Kessler Topaz Meltzer & Check, LLP Reminds Lordstown Motors Corp. Shareholders of Securities Fraud Class Action Lawsuit
RADNOR, Pa., April 15, 2021 (GLOBE NEWSWIRE) – Law firm Kessler Topaz Meltzer & Check, LLP is reminding investors 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) (“Lordstown”) f / k / a DiamondPeak Holdings Corp. (NASDAQ: DPHC) (“DiamondPeak”) on behalf of those who have bought or acquired Lordstown securities between August 3, 2020 and March 24, 2021including (the “Class Period”).
Investor Deadline Reminder: Investors who have bought or acquired Lordstown Securities during the lesson period, 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; per email to firstname.lastname@example.org; 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.
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 (“Hindenberg Research”) 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 about 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. According to 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.
Finally, on March 24, 2020, during the trading day, Hindenburg Research released additional images of the Endurance EV truck after it broke down and had to be loaded onto a tow truck while filming a commercial that had aired a few days earlier The common stock of Lordstown will be listed on the stock exchange through the combination with DiamondPeak. Following the news, Lordstown’s share price fell another $ 1.21 per share.
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. 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)