Kaskela Law LLC Announces Shareholder Class Action Lawsuit Against Lordstown Motors Corp. (DPHC, RIDE) and Encourages Long-Term Investors to Contact the Firm
PHILADELPHIA, PA / ACCESSWIRE / May 17, 2021 / Kaskela Law LLC announced that a class action lawsuit against Lordstown Motors Corp. (NASDAQ: RIDE) (“Lordstown” or the “Company”) v DiamondPeak Holdings Corp. (NASDAQ: DPHC) (“DiamondPeak”) was filed “) on behalf of investors who purchased shares in the Company between August 3, 2020 and March 17, 2021 (including the” Class Period “).
Lordstown shareholders who purchased or acquired DPHC or RIDE securities prior to September 21, 2020 are requested to contact Kaskela Law LLC at (484) 258-1585 or email firstname.lastname@example.org or online (D. Seamus Kaskela, Esq.) To contact For more information about your legal rights and options, please visit https://kaskelalaw.com/case/xl-fleet-corp/.
According to the complaint, on March 12, 2021, Hindenburg Research published a damning report on the electric vehicle maker entitled “The Lordstown Motors Mirage: Counterfeit Orders, Unknown Production Hurdles and a Prototype Inferno”. According to Hindenburg, the company’s 100,000 pre-orders for its EV truck “were largely fictional and were used as props to raise capital and give legitimacy”. Hindenburg also cited significant undisclosed production delays and a prototype that “went up in flames 10 minutes before the test drive” in January 2021, backing claims by former employees that the company is not performing the tests or validations required by the NHTSA. Following the news, the company’s shares fell $ 2.93 per share, or over 16% of value, to close at $ 14.78 per share on March 12, 2021 with a heavy trade.
On March 17, 2021, the company conducted a call for profits during which the defendant Burns announced that Lordstown had received a request from the SEC. Notably, although Lordstown also issued a press release and Form 8-K disclosing its fourth quarter and full year 2020 financial results after the close of trading on March 17, 2021, the presence of the SEC investigation has been made into them Documents not disclosed. Following the news, the company’s shares fell another $ 2.08 per share, or over 13% of value, to close at $ 13.01 per share on March 18, 2021, again due to high trading volume.
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Lordstown investors who purchased or acquired DPHC or RIDE securities prior to September 21, 2020 are encouraged to contact Kaskela Law LLC for more information about their statutory rights and options.
Kaskela Law LLC only represents investors in the areas of securities fraud, corporate governance, and merger and acquisition disputes. For more information about Kaskela Law LLC, please visit www.kaskelalaw.com.
D. Seamus Kaskela, Esq.
KASKELA LAW LLC
18 Campus Boulevard, Suite 100
Newtown Square, PA 19073
SOURCE: Kaskela Law LLC
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