Bragar Eagel & Squire, P.C. Reminds Investors That a Class Action Lawsuit Has Been Filed Against Romeo Power, Inc. and Encourages Investors to Contact the Firm

NEW YORK, June 12, 2021 – (BUSINESS WIRE) – Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, reminds investors that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York in On behalf of investors who have purchased Romeo Power, Inc. (NYSE: RMO) securities between October 5, 2020 and March 30, 2021, inclusive (the “Class Period”). Investors have until June 15, 2021 to apply to the court for appointment as the lead plaintiff in the proceedings.

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On February 12, 2019, RMG Acquisition Corp. (“RMG”), a New York City-based special purpose vehicle (SPAC), announced that it has completed its initial public offering of 20 million units at $ 10 per share, resulting in gross proceeds of $ 200 million.

On October 5, 2020, RMG announced a definitive business combination agreement with Defendant Romeo that would result in Romeo becoming a publicly traded company. Upon completion of the transaction, the combined company would be named Romeo Power, Inc., listed on the NYSE and trading under the new ticker symbol “RMO” and its warrants trading under the new symbol “RMO.WT”.

On March 30, 2021, Romeo issued a press release and filed a report with the SEC on Form 8-K disclosing its financial results for the quarter and year ended December 31, 2020, and held a conference call with investors and analysts . Defendants shocked investors by announcing that the company’s production was hampered by a shortage in the supply of battery cells and that, as a result, estimated sales would decrease by about 71-87% in 2021.

On March 31, 2021, Romeo stock fell from a closing price of $ 10.37 per share on March 30, 2021 to $ 8.33 per share, a decrease of $ 2.04 per share, or nearly 20%.

The lawsuit filed on April 16, 2021 alleges that Romeo suffered from an acute shortage of high-quality battery cells, which are key raw materials for Romeo’s battery packs and modules, due to delivery bottlenecks unknown to investors. Contrary to what Defendant claims, (i) Romeo only had two battery cell suppliers, not four, (ii) the future potential risks that Defendants had warned of in relation to supply disruptions or bottlenecks had already materialized and had a negative impact on Romeo’s business , Operations and Prospects, (iii) Romeo did not have the battery cell inventory to meet end-user demand and ramp up production in 2021, (iv) Romeo’s supply shortages were a major impediment to Romeo’s sales growth and (v ) Romeo’s supply chain for battery cells was not secured, but was actually completely endangered and only two battery cell suppliers and the spot market were committed to their inventory in 2021. Given the supply restrictions Romeo faced during the class action period, defendants had no reasonable basis for the company to be able to meet customer demand and support sales growth in 2021.

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If you have purchased Romeo securities during the Class Action Period and suffered a loss, are a long-term shareholder, have information, want to learn more about these claims, or have questions about this announcement or your rights or interests in relation to these matters, please contact Brandon Walker, Melissa Fortunato or Marion Passmore by email at [email protected], by phone at (212) 355-4648, or by completing this contact form. There are no costs or obligations for you.

About Bragar Eagle & Squire, PC:

Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivatives and other complex litigation in state and federal courts across the country. More information about the company can be found at www.bespc.com. Lawyer advertising. Previous results do not guarantee similar results.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210611005497/en/

contacts

Bragar Adler & Knappe, PC
Brandon Walker, Esq.
Melissa Fortunato, Esq.
Marion Passmore, Esq.
(212) 355-4648
[email protected]
www.bespc.com

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