The complaint centers on allegations that TruGolf and its directors misrepresented the risks and scale of share conversions, which caused the company’s outstanding Class A share count to more than double in under five months. Plaintiffs claim that despite possessing real-time data on these conversions, the firm characterized the resulting dilution as merely a hypothetical future risk. This activity allegedly forced two reverse stock splits and contributed to a decline of over 98% in the split-adjusted price of the company's common stock.
In section Releases
TruGolf Faces Securities Fraud Class Action Over Stock Dilution
Investors who purchased TruGolf Holdings stock are being urged to join a class action lawsuit filed by Pomerantz LLP. The litigation alleges that the company misled shareholders regarding its capital structure and the massive, rapid dilution caused by the conversion of Series A preferred stock.
Beyond the dilution, the lawsuit highlights significant discrepancies in the company's financial reporting. The filing asserts that TruGolf’s April 15, 2026, Form 10-K overstated outstanding Class A shares by approximately 52% and omitted key investors from its beneficial ownership disclosures. Investors seeking to be appointed as Lead Plaintiff must file their requests with the court by September 28, 2026. Interested parties may contact Danielle Peyton at Pomerantz LLP to participate in the ongoing litigation.
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