INVESTOR ALERT: Kirby McInerney LLP Announces the Filing of a Securities Class Action Lawsuit Against Lordstown Motors Corp.
NEW YORK–(BUSINESS WIRE) – Kirby McInerney LLP law firm announces that a class action lawsuit has been filed in the United States District Court for the Northern District of Ohio on behalf of those who Lordstown Motors Corp. (“Lordstown” or the “Company”). (NASDAQ: RIDE) securities from August 3, 2020 to March 17, 2021 (the “Class Period”). Investors have until May 17, 2021 to apply to the court for appointment as the lead plaintiff in the lawsuit.
Before the markets opened on March 12, 2021, analyst Hindenburg Research published a damning report on the electric vehicle manufacturer entitled “The Lordstown Motors Mirage: Fake Orders, Unknown Production Hurdles and a Prototype Inferno”. According to Hindenburg, the company’s 100,000 pre-orders for its EV truck are “largely fictitious and used as props to raise capital and give legitimacy.” Hindenburg also cited significant undisclosed production delays and a prototype that “went up in flames 10 minutes before test drive” in January 2021, backing claims by former employees that the company is not performing the tests or validations required by the NHTSA. In that news, Lordstown shares fell $ 2.93 per share, or approximately 16.5%, from $ 17.71 per share to $ 14.78 per share on March 12, 2021.
After markets closed on March 17, 2021, it was reported that Lordstown announced that the company is the subject of an SEC investigation for information following the release of the Hindenburg Research report. Before the markets opened on March 18, 2021, Stephen Burns, CEO of Lordstown, appeared on CNBC and stated, “We never said we had business. We don’t have a product yet, so by definition you can’t have orders. “On that news, Lordstown shares fell $ 2.08 per share, or approximately 13.8% from $ 15.09 per share, to close at $ 13.01 per share on March 18, 2021.
If you have purchased or otherwise acquired Lordstown securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, via email at investigations @ kmllp. com or by filling out this contact form to discuss your rights or interests in relation to these matters at no cost to you.
Kirby McInerney LLP is a New York-based law firm focused on securities, antitrust, whistleblower and consumer litigation. The company’s efforts on behalf of shareholders in securities disputes have resulted in total recoveries of $ billion. For more information about the company, please visit the Kirby McInerney LLP website: http://www.kmllp.com.
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