NEW YORK–(BUSINESS WIRE) – Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, announces that a class action has been filed in the United States District Court for the Northern Ohio District on behalf of the investors who bought Lordstown Motors Corp. (NASDAQ: RIDE) titles between August 3, 2020 and March 17, 2021, inclusive (the “Class Period”). Investors have until May 17, 2021 to request the Court to appoint the plaintiffs.
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According to its website, Lordstown is an automotive company founded with the aim of developing and manufacturing light electric trucks for sale to fleet customers. The company’s flagship vehicle is the “Endurance”, a life-size electric pickup.
On March 12, 2021, analyst Hindenburg Research published a hard-hitting report on Lordstown, entitled: “The Lordstown Motors Mirage: False Orders, Undisclosed Production Obstacles and a Prototype from Hell”. In this report, Hindenburg noted that Lordstown “has no revenue or salable product” and wrote that the company “deceived investors both in their demand and in their production capacity”. The Hindenburg report concluded that “Lordstown requests are largely fictional and used as a support to raise capital and confer legitimacy”, and that a former employee “explained how the company is experiencing delays and making ‘drastic’ design changes , putting [Lordstown] about 3-4 years away from production ”, instead of the company being“ on the right track ”to start production in September 2021.
With this news, Lordstown’s common stock price fell approximately 16.5% in one day, below its March 11, 2021 closing price of $ 17.71 to a March 12, 2021 closing of just $ 14.78. This represents hundreds of millions of dollars in lost market capitalization.
Then, on March 17, 2021, after the closing of the negotiations, the Company held a earnings conference call announcing that Lordstown had received an inquiry from the SEC. Surprisingly, although Lordstown also issued a press release and Form 8-K announcing its financial results for the fourth quarter and the full year of 2020 after the closing of the negotiations on March 17, 2021, the Company has not disclosed the existence of the investigation. the SEC in these filings.
With this news, the stock fell approximately another 9% in the aftermarket.
The complaint, filed on March 18, 2021, alleges that, throughout the Term, the defendants made materially false and misleading statements about the Company’s business. Specifically, the defendants made false and / or misleading statements and / or did not disclose that: (i) the Company’s alleged orders were not binding; (ii) many of the prospective customers who placed these alleged orders lacked the means to make such purchases and / or would not have a reliable demand for Lordstown’s Endurance; (iii) Lordstown is not and was not “on the right track” to start production of Endurance in September 2021; (iv) the first Endurance test caused the vehicle to catch fire in 10 minutes; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times.
If you purchased bonds from Lordstown Motors during the Class Period and suffered a loss, are you a long-term shareholder, have information, would like to know more about these claims, or have any questions about this announcement or your rights or interests with respect to these matters, contact Brandon Walker, Melissa Fortunato or Marion Passmore by email at [email protected], telephone (212) 355-4648, or by filling out this contact form. There is no cost or obligation for you.
About Bragar Eagel & Squire, PC:
Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California and South Carolina. The company represents individual and institutional investors in commercial, securities, derivatives and other complex litigation in state and federal courts. all over the country. For more information about the company, visit www.bespc.com. Lawyer advertisement. Previous results do not guarantee similar results.