Kirby McInerney LLP | Financial Litigation Law Firm | <h3 >TMC The Metals Company Inc. f/k/a Sustainable Opportunities Acquisition Corp.</h3 >
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TMC The Metals Company Inc. f/k/a Sustainable Opportunities Acquisition Corp.


The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of those who acquired TMC the metals company Inc. f/k/a Sustainable Opportunities Acquisition Corp. (“TMC” or the “Company”) (NASDAQ: TMC) securities from March 4, 2021 through October 5, 2021, inclusive (the “Class Period”). Investors have until December 27, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
 
TMC is a Canadian deep-sea minerals exploration company focused on the collection, processing, and refining of polymetallic nodules found on the seafloor of the Clarion Clipperton Zone of the Pacific Ocean (the “CZZ”).
 
On October 6, 2021, before markets opened, market researcher Bonitas Research released a report alleging multiple issues plaguing TMC. The report alleged: (1) overpayment on licenses to potential undisclosed insiders; (2) artificially inflated exploration expenses; (3) potentially unusable license for which TMC paid $43 million in cash and stock; and (4) a history of affiliating with bad actors. On this news, the Company’s share price declined by $.32 per share, or approximately 7.2%, from $4.46 per share to close at $4.14 per share on October 6, 2021.
 
The lawsuit alleges throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose: (1) the Company had significantly overpaid to acquire Tonga Offshore Mining Limited (“TOML”) to undisclosed insiders; (2) the Company had artificially inflated its Nauru Ocean Resources Inc. (“NORI”) exploration expenditures to give investors a false scale of its operations; (3) the Company’s purported 100% interest in NORI was questionable given prior disclosures to the International Seabed Authority (“ISA” or the “Authority”) that NORI was wholly owned by two Nauruan foundations and that all future income from NORI would be used in Nauru; (4) Defendants had significantly downplayed the environmental risks of deep-sea mining polymetallic nodules and failed to adequately warn investors of the regulatory risks faced by the Company’s environmentally risky exploitation plans; (5) the Company’s private investment in public equity (“PIPE”) financing was not fully committed and, therefore, the Company would not have the cash necessary for large sale commercial production; (6) as a result of the foregoing, the Company’s valuation was significantly less than Defendants disclosed to investors; and (7) as a result, Defendants’ public statements were materially false and/or misleading at all relevant times. 


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