San Francisco, Calif .– (Newsfile Corp. – April 2, 2021) – On April 2, 2021, Berman Tabacco’s California office filed a class action lawsuit against Canoo Inc. (“Canoo” or “Company”) (NASDAQ : GOEV, GOEVW) and some of its current and former officers and directors on behalf of persons and organizations who have purchased or otherwise acquired publicly traded Canoo common stock and / or warrants from August 18, 2020 through August 18, 2020, inclusive March 29, 2021 (the “Class Period”).
The lawsuit has been filed in the US District Court in the Central District of California and seeks claims under Sections 10 (b) and 20 (a) of the Securities Exchange Act of 1934, 15 USC Sections 78j (b) and 78t (a). . The case is headed Blake v Canoo Inc. et al., No. 2: 21-cv-02873. A copy of the complaint is available on the company’s website at https://bit.ly/39V4mDB.
According to the complaint, Canoo was acquired in December 2020 through a business combination between Hennessy Capital Acquisition Corp. IV (a Special Purpose Acquisition (SPAC)) and Canoo Holdings Limited. The company is a mobile technology company that develops electric vehicles. The complaint alleges that, before and after the merger, the company promoted a business model that relied on a three-phase approach to generating revenue and growth: (i) an engineering services segment, (ii) selling subscriptions to vehicles Consumer; and (iii) selling vehicles to other companies.
The complaint alleges that on March 29, 2021, the company announced that it had radically changed its business model by downgrading its engineering services business and no longer focusing on its subscription business. It is further alleged that in response to this news, Canoo’s stock increased from a closing price of $ 11.80 per share on March 29, 2021, to $ 2.50 (or 21.2%) to $ 9.30 per share March 30, 2021 fell due to the high volume.
The complaint alleges that defendants misled investors by misrepresenting and / or failing to disclose: (i) The company’s Engineering Services segment was not a profitable business, would not generate significant revenue in 2021, and that does not reduce operational risk. (ii) that the company would no longer focus on its subscription-based business model; and (iii) as a result, the Company’s public statements at all relevant times have been materially false and misleading.
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If you wish to serve as the lead plaintiff for the class, you must file a lead plaintiff petition in the court no later than sixty (60) days after the date of this notice. Any member of the proposed class can have the court, through an attorney of their choice, act as lead plaintiff, or they can decide not to do anything and remain a member of the proposed class.
If you would like to discuss this promotion or have any questions about this notice or your rights or interests, please visit: https://www.bermantabacco.com/case/canoo-inc./.
Berman Tabacco is a national law firm that represents institutions and individuals in litigation seeking to recover losses caused by corporate and board misconduct, as well as breaches of securities and antitrust laws. The company has offices in San Francisco, California and Boston, Massachusetts.
This communication may constitute a solicitation of a lawyer.
Jeffrey Rocha, Esq.
The source version of this press release can be found at https://www.newsfilecorp.com/release/79350