Kaskela Law LLC Announces Shareholder Class Action Lawsuit Against Romeo Power Inc. (RMO, RMG) and Encourages Investors with Losses in Excess of $100,000 to Contact the Firm
PHILADELPHIA, April 17, 2021 (GLOBE NEWSWIRE) – Kaskela Law LLC announces that a class action lawsuit has been filed against Romeo Power Inc. (“Romeo” or the “Company”) (NYSE: RMO), formerly known as RMG, Acquisition Corp. . (“RMG”) (NYSE: RMG) on behalf of investors who have bought or acquired RMO or RMG securities between October 2, 2020 and March 2, 2021 (the “Class Period”).
IMPORTANT DEADLINE: Investors who bought Romeo’s securities during the class period can: no later than June 15, 2021try to be appointed as the plaintiff’s principal agent in the lawsuit.
Romeo Investors who have suffered an investment loss of more than $ 100,000 are encouraged to contact us Kaskela Law LLC (D. Seamus Kaskela, Esq.) At (484) 258-1585 or email at firstname.lastname@example.org or online at https://kaskelalaw.com/case/romeo-power-inc/, to discuss the possibility of actively participating in the action as a representative of the lead plaintiff.
On October 5, 2020, RMG announced a definitive business combination agreement with Romeo that would result in Romeo becoming a publicly traded company. According to the complaint, the defendants stated during the classroom that Romeo had estimated sales of $ 11 million in 2020 and estimated sales of $ 140 million in 2021. Defendants also argued that Romeo had “key partnerships” and close relationships with LG Chem, Samsung, Murata and SK Innovation, which manufacture battery cells, a key component in Romeo’s battery modules and packs, and supply Romeo with battery cells. In addition, defendants alleged that Romeo had the capacity and supply to meet consumer demand for Romeo’s products, that Romeo was not committed to “any level of the value chain”, that its supply was secured and that it did not see any material challenges that would drive growth would hinder. On December 29, 2020, Romeo announced the completion of its business combination with RMG.
According to the complaint, “Romeo suffered from an acute shortage of high-quality battery cells, which are important raw materials for Romeo’s battery packs and modules, due to delivery bottlenecks.” Then, on March 30, 2021, Romeo shocked investors by announcing that production was discontinued of the company’s been hampered by a shortage of battery cells and that estimated sales by 2021 would therefore decrease by about 71-87%. Following this news, the company’s shares fell $ 2.04 per share, or nearly 20% of value, to close at $ 8.33 on March 31, 2021.
Romeo investors who have suffered an investment loss of more than $ 100,000 are encouraged to contact Kaskela Law LLC to discuss the opportunity to actively participate in the action as the lead plaintiff’s agent. Kaskela Law LLC only represents investors in the areas of securities fraud, corporate governance, and merger and acquisition disputes. For more information about Kaskela Law LLC, please visit www.kaskelalaw.com.
D. Seamus Kaskela, Esq.
KASKELA LAW LLC
18 Campus Boulevard, Suite 100
Newtown Square, PA 19073