Upexi (UPXI) has filed a complaint in the United States District Court for the District of Nevada to pursue the groups and individuals who orchestrated the manipulative and fraudulent activity in the shares round-up scheme related to Upexi’s reverse stock split. Upexi anticipates that the court, through the discovery process, will enable the Company to determine who are the individuals owning the accounts and engaged in the manipulative trading transactions within those accounts in connection with and around the announcement and effective date of Upexi’s reverse stock split. The Company and its legal team will pursue aggressively obtaining the relief that it seeks in the Complaint. The Company previously announced the reverse stock split. Several weeks subsequent to the effective date, the financial institutions where the suspect trading took place requested 202,183 round-up shares, which represented more than a 19% dilution to our current shareholders and an increase of approximately 40 times the number of individual shareholders owning the Company’s common stock immediately prior to the reverse split. The foregoing activity appears to have occurred during the three-day trading period between the announcement of the reverse split and its effective date. Allan Marshall, CEI, stated, “The company has taken the first and precedent-setting action in exposing the blatant manipulation around reverse stock splits. Since our previous release regarding this issue, I have been contacted by a number of companies who also were victims of this damaging stock manipulation scheme. I am astonished by the extent of the evidentiary support and encouragement I have received from multiple sources to advance our claims against those whom we believe manipulated the shares of Upexi and other securities. We believe that the evidence will identify and establish organized group trading, groups charging fees to buy and distribute shares for individuals, and individuals opening up to 50 individual accounts to perpetrate the scheme. The fact that so many microcap companies and their shareholders have been damaged in compliant reverse stock splits with no regulatory intervention to protect them against such manipulative activity is unacceptable, and we hope this lawsuit will bring into focus the need for regulatory changes to bring to an end these sinister and deceptive practices. We will follow through with this lawsuit for as long as it takes and hopefully undo some of the damage perpetrated against our shareholders by third parties and to investors in many other companies as well.”
