SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholders with Losses on their Investment in Romeo Power, Inc. f/k/a RMG Acquisition Corp. of Class Action Lawsuit and Upcoming Deadline
NEW YORK, May 13, 2021 / PRNewswire / – Pomerantz LLP announces that a class action lawsuit has been filed Romeo Power, Inc. (“Romeo” or the “Company”) (f / k / a RMG Acquisition Corp.) (NYSE: RMO) and some of its officers. The class action lawsuit filed in The United States District Court for the Southern District of new Yorkand registered under 21-cv-04058 is on behalf of a class consisting of all persons and entities, other than Defendants, who have intervened or otherwise acquired the publicly traded securities of Romeo 5th October 2020 by March 30, 2021including (the “Class Period”). Plaintiff is pursuing claims against defendants under the Securities Exchange Act of 1934 (the “Exchange Act”).
If you are a shareholder who bought Romeo securities during the class period, you have up to June 15, 2021 ask the court to appoint you as the lead plaintiff for the class. A copy of the complaint is available at www.pomerantzlaw.com. To discuss this action, please contact Robert S. Willoughby at the [email protected] or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 7980. Those inquiring by email are asked to provide their postal address, telephone number, and the number of shares purchased.
[Click here for information about joining the class action]
The complaint alleges that throughout the teaching period, the defendants demonstrated that Romeo had an estimated 2020 sales of $ 11 millionand estimated revenue of Romeo for 2021 $ 140 million. Defendants also stated 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. Defendants also 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.
Romeo was unknown to investors and suffered from an acute shortage of high-quality battery cells, which are important raw materials for Romeo’s battery packs and modules, due to supply bottlenecks. Contrary to what the defendant claims: (i) Romeo only had two battery cell suppliers, not four; (ii) the future potential risks that Defendants had warned of disruptions or supply shortages had already arisen and had a negative impact on Romeo’s business, operations and prospects; (iii) Romeo did not have the battery cell inventory to meet end-user demand and ramp up production in 2021. (iv) Romeo’s supply shortages have been a major impediment to Romeo’s sales growth. and (v) Romeo’s supply chain for battery cells was not secured, in fact completely at risk and only committed to two battery cell suppliers and the spot market for their inventory in 2021. Given the supply bottlenecks Romeo experienced during the class period, defendants had no reasonable basis to demonstrate that the company was able to meet customer demand and that it would support sales growth in 2021.
On March 30, 2021After the market closed, Romeo issued a press release and filed a report on Form 8-K with the Securities and Exchange Commission, which published financial results for the past quarter and fiscal year December 31, 2020and held a conference call with investors and analysts. Defendants shocked investors when they announced that the company’s production had been hampered by a shortage of battery cells and therefore estimated sales would decrease by about 71-87% by 2021.
During a conference call with investors following the announcement of Romeo’s financial results and forecast results, the defendant stated Lionel E. Selwood, Jr. (“Selwood, Jr.”) announced that the company relied solely on Samsung and LG to supply power cells.
On March 31, 2021Morgan Stanley released a research report in which Romeo’s price target per share was downgraded from $ 12 to $ 7.
On too March 31, 2021The Romeo share fell from the closing price March 30, 2021 of $ 10.37 per share to close at $ 8.33 per share a decrease of $ 2.04 per share or almost 20% for a higher than usual volume of over 20 million shares.
The Pomerantz company with offices in new York, Chicago, The angel, and Paris is recognized as a leader in corporate, securities and antitrust litigation. Established by the late Abraham L. PomerantzPomerantz, known as the dean of class action, pioneered class action lawsuits. Today, more than 80 years later, the Pomerantz company continues its tradition of fighting for the rights of victims of securities fraud, fiduciary violations and corporate misconduct. The company has reclaimed numerous millions of dollars in damages on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
888-476-6529 ext. 7980
SOURCE Pomerantz LLP