Kessler Topaz Meltzer & Check, LLP Reminds Investors of Deadline for Securities Fraud Class Action Lawsuit Filed Against Lordstown Motors Corp.
RADNOR, Pa .– (BUSINESS WIRE) – Kessler Topaz Meltzer & Check, LLP law firm announces that a class action lawsuit for securities fraud has been filed against Lordstown Motors Corp. in the U.S. District Court for the Northern District of Ohio. (NASDAQ: RIDE) was filed (“Lordstown”) F / k / a DiamondPeak Holdings Corp. (NASDAQ: DPHC) (“DiamondPeak”) on behalf of those who purchased or acquired Lordstown securities between August 3, 2020 and March 17, 2021 inclusive (the “Class Period”).
Deadline Reminder: Investors who purchased or acquired Lordstown Securities during the Class Period may, no later than May 17, 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; by email to email@example.com; or click https://www.ktmc.com/lordstown-motors-class-action-lawsuit?utm_source=PR&utm_medium=link&utm_campaign=lordstown
Lordstown is an automotive company founded to develop and manufacture light electric vehicles to be sold to fleet customers. Lordstown’s alleged flagship is the Endurance, a full-size electric pickup truck. DiamondPeak was acquired as a special purpose vehicle.
The class period begins on August 3, 2020 when Lordstown and DiamondPeak announced that they have entered into a definitive merger agreement. A relevant part of the publication of August 3, 2020 provided that the transaction valued Lordstown “with an implicit pro forma equity value of USD 1.6 billion” and that the transaction is expected to generate gross proceeds of approximately USD 675 million would deliver. The press release also announced that the transaction is expected to close in the fourth quarter of 2020. Throughout the classroom, Lordstown repeatedly praised its pre-order agreements with potential customers. In addition, Lordstown stated several times that it was “on the right track” to start production of the Endurance in September 2021.
Before markets opened on March 12, 2021, Hindenburg Research, LLC released a report on Lordstown entitled, “The Lordstown Motors Mirage: Wrong Orders, Unknown Production Hurdles, and a Prototype Inferno.” The report found that Lordstown “has no revenue and no salable product” and that Lordstown “has misled investors as to both their demand and production capabilities”. The report concluded that Lordstown’s “assignments are largely fictional and serve as props to raise capital and give legitimacy,” and that a former employee “explained how the company is experiencing delays and making” drastic “design changes [Lordstown] estimated 3-4 years away from production ”instead of Lordstown being“ on track ”for a production start in September 2021. Following the news, Lordstown common stock fell approximately 16.5% from its closing price on March 11, 2021 of $ 17.71 to a closing price on March 12, 2021 of $ 14.78.
Then, on March 17, 2021, Lordstown held a post-trading call for profits on which the defendants announced that Lordstown had received a request from the US Securities and Exchange Commission (“SEC”). Although Lordstown also issued a press release and Form 8-K announcing its fourth quarter and full year 2020 financial results after close of trading on March 17, 2021, Lordstown failed to disclose the presence of the SEC investigation in these filings . Following the news, Lordstown’s aftermarket share price fell another 9%.
The complaint alleges that throughout the classroom, the defendants made false and / or misleading statements and / or failed to disclose that: (1) Lordstown’s alleged pre-orders were non-binding; (2) many potential customers who made these alleged pre-orders lacked the funds to make such purchases and / or did not have a credible demand for endurance; (3) Lordstown is and was not “on track” to begin production of the Endurance in September 2021. (4) The first endurance test run resulted in the vehicle going up in flames within 10 minutes. and (5) as a result, Lordstown’s public statements have been materially false and misleading at all relevant times.
Lordstown investors can, no later than May 17, 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. For more information on Kessler Topaz Meltzer & Check, LLP, please visit www.ktmc.com.