Kessler Topaz Meltzer & Check, LLP Announces that a Securities Fraud Class Action Lawsuit was filed on Behalf of Investors of Canoo Inc.
RADNOR, Pa., April 17, 2021 (GLOBE NEWSWIRE) – Kessler Topaz Meltzer & Check, LLP’s law firm reminds investors of Canoo Inc. (NASDAQ: GOEV; GOEVW) (“Canoo”) f / k / a Hennessy Capital Acquisition Corp. IV (NASDAQ: HCAC; HCACW; HCACU) (“Hennessy Capital”) that a class action lawsuit for securities fraud has been filed in the US District Court for the Central District of California on behalf of those who purchased or acquired Canoo Securities between August 18, 2020 and March 29, 2021including (the “Class Period”).
Investor Deadline Reminder: Investors who have bought or acquired Canoo Securities during the lesson period, no later than June 1, 2021try to be appointed as the plaintiff’s principal representative of the class. For more information or to learn how to participate in this litigation, please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453 or Adrienne Bell, Esq. (484) 270-1435; toll free at (844) 887-9500; per email to email@example.com; or click https://www.ktmc.com/canoo-class-action-lawsuit?utm_source=PR&utm_medium=Link&utm_campaign=Canoo
Canoo Holdings Ltd. (“Canoo Holdings”) was an electric vehicle (“EV”) company that announced a “unique business model that defies traditional ownership to put customers first”. A delivery vehicle (start 2022), a pickup (start 2023) and a delivery van have all been announced, all based on the same underlying technological platform. Hennessy Capital was a special purpose vehicle formed to conduct a merger, stock exchange, asset purchase, share purchase, reorganization, or similar business combination. On or about December 21, 2020, Canoo Holdings was merged with Hennessy Capital into a public entity, with the surviving entity being called Canoo (the “Merger”).
The class period begins on August 18, 2020 when Hennessy Capital and Canoo Holdings issued a joint press release announcing the merger. In its press release, Canoo Holdings praised its engineering service line and Hyundai partnership for jointly developing a future EV platform.
The story goes on
On September 18, 2020, Canoo filed its registration statement on a Form S-1 with the US Securities and Exchange Commission. The registration declaration was then changed on October 23, 2020 and November 27, 2020. Canoo filed its prospectus with the SEC on December 4, 2020 on a Form 424b3. On December 21, 2020, the shareholders voted to approve the merger at a special meeting.
On March 29, 2021, after the market closed, Canoo held a conference call related to the fourth quarter 2020 financial results, which were released the same day. During the call, defendant Tony Aquila, who has been a director of Canoo since the closing of the deal, announced that Canoo would no longer focus on its engineering services business. On the same day, Canoo also announced that Paul Balciunas, who served as Canoo’s Chief Financial Officer following the completion of the merger, had resigned effective April 2, 2021. Following the news, Canoo’s share price fell $ 2.50, or 21.19%. to close on March 30, 2021 at $ 9.30 per share.
The complaint alleges that throughout the class period, defendants failed to advise investors that: (1) Canoo was less focused on its plan to sell vehicles to consumers through a subscription model; (2) Canoo would downgrade its engineering services business; (3) Contrary to previous statements, Canoo had no partnerships with original equipment manufacturers and was no longer involved in the previously announced partnership with Hyundai. and (4) as a result of the foregoing, Defendants’ positive statements about Canoo’s business, operations and prospects were materially misleading and / or unfounded.
Canoo investors can, no later than June 1, 2021, attempt to be appointed as the class lead plaintiff by Kessler Topaz Meltzer & Check, LLP, or other attorney, or choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the dispute. To be named lead plaintiff, the court must determine that the class member’s claim is typical of the claims of other class members and that the class member is adequately representing the class. Your ability to get involved in a recovery will not be affected by whether or not you will be the lead plaintiff.
Kessler Topaz Meltzer & Check, LLP, pursues class actions in state and federal courts across the country involving securities fraud, fiduciary violations, and other violations of federal and state law. Kessler Topaz Meltzer & Check, LLP, is a driving force behind corporate governance reform and has reclaimed billions of dollars on behalf of institutional and individual investors from the US and around the world. The company represents investors, consumers and whistleblowers (individuals who report fraudulent practices against the government and are involved in recovering government dollars). The complaint in this lawsuit was not filed by Kessler Topaz Meltzer & Check, LLP. Further information on Kessler Topaz Meltzer & Check, LLP can be found at www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
James Maro Jr., Esq.
Adrienne Bell, Esq.
280 Street of the King of Prussia
Radnor, PA 19087
(844) 887-9500 (toll free)