Class Action Filed Against TruGolf Holdings Over Share Dilution Allegations
News related to:TruGolf Holdings, Inc · 2 min read
Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, has announced the filing of a class action lawsuit against TruGolf Holdings, Inc. (NASDAQ: TRUG) and certain of its officers. The lawsuit seeks to recover damages for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired TruGolf securities between September 10, 2025, and May 20, 2026, inclusive.
According to the complaint, the lawsuit alleges that throughout the class period, TruGolf and its officers made materially false and/or misleading statements and/or failed to disclose critical information. Specifically, the complaint states that Series A preferred investors were actively converting their preferred shares into increasing numbers of Class A shares at floating and ratcheting conversion prices, resulting in significant ongoing dilution. TruGolf had real-time knowledge of this conversion activity and its resulting dilution, but failed to disclose the extent and potential impact of the Series A conversions.
The complaint also alleges that TruGolf reported materially inaccurate and inconsistent Class A shares outstanding, including overstating its outstanding shares by approximately 52% in its April 15, 2026, Form 10-K. Additionally, the company failed to adequately disclose the scale and foreseeable consequences of the Class A share issuances, including the risk of continued dilution and Nasdaq listing noncompliance. The lawsuit claims that TruGolf omitted certain investors with reported beneficial ownership exceeding 5% from its disclosures and failed to fully disclose the economic terms and dilutive impact of its Series A Preferred Stock.
When the true details entered the market, the lawsuit claims that investors suffered damages. The complaint further alleges that the company's failure to disclose these critical facts misled investors and resulted in financial harm.
Bronstein, Gewirtz & Grossman, LLC, encourages TruGolf investors to join the case by visiting the firm's website at bgandg.com/cases/trugolf-holdings-inc-trug-class_action_lawsuit. Investors who purchased or otherwise acquired TruGolf securities between September 10, 2025, and May 20, 2026, are encouraged to review the complaint and consider their legal rights.
The firm represents investors in securities fraud class actions and shareholder derivative suits. Bronstein, Gewirtz & Grossman, LLC has recovered hundreds of millions of dollars for investors nationwide.
Investors who suffered a loss in TruGolf and wish to review the complaint or request that the Court appoint them as lead plaintiff have until September 28, 2026, to do so. The firm will ask the court to reimburse them for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if they are successful.