INVESTOR ALERT: Kirby McInerney LLP Announces the Filing of a Securities Class Action Lawsuit Against Romeo Power, Inc.
NEW YORK–(BUSINESS WIRE) – Kirby McInerney LLP law firm announces that a class action lawsuit has been filed in the US District Court for the Southern Borough of New York on behalf of those who acquired Romeo Power, Inc. (“Romeo” or the “Company”) ( NYSE: RMO) securities for the period October 5, 2020 to March 30, 2021 (the “Class Period”). Investors have until June 15, 2021 to apply to the court for appointment as the lead plaintiff in the lawsuit.
On March 30, 2021, Romeo released a press release announcing its financial and operating results for the fourth quarter of 2020. Regarding the outlook for 2021, Romeo referred to “supply bottlenecks” and “the significant shortage of battery cell capacity across the industry” to investors that it “now expects its sales for 2021 to be in the range of $ 18-40 million “- significantly lower than expected by analysts. In the news, Romeo’s share price fell $ 2.04 per share, or 19.67%, to close at $ 8.33 per share on March 31, 2021.
The complaint alleges that throughout the teaching period, the defendants made materially false and / or misleading statements and failed to disclose that: (1) They 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 the information provided by the defendant (2), Romeo only had two battery cell suppliers, not four. (3) The future potential risks that Defendants warned about supply disruptions or bottlenecks had already materialized and were already negatively affecting Romeo’s business, operations and prospects; (4) Romeo did not have the battery cell inventory to meet end-user demand and boost production in 2021. (5) Romeo’s supply restriction was a major impediment to Romeo’s sales growth; and (6) Romeo’s battery cell supply chain was not secured, but was in fact completely jeopardized and only committed to two battery cell suppliers and the spot market for their inventory in 2021.
If you have purchased Romeo securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney at 212-371-6600, by emailing firstname.lastname@example.org, or by contacting fill out this contact form to discuss your rights or interests in relation to these matters at no cost to you.
Kirby McInerney is a New York-based law firm focused on securities, antitrust, and whistleblower litigation. The company’s efforts on behalf of shareholders in securities disputes have resulted in total recoveries of $ billion. For more information about the company, please visit Kirby McInerney’s website: www.kmllp.com.
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