Kessler Topaz Meltzer & Check, LLP Announces a Securities Fraud Class Action Lawsuit Filed Against Romeo Power, Inc.
RADNOR, Pa., April 21, 2021 / PRNewswire / – Kessler Topaz Meltzer & Check, LLP law firm announces that a class action lawsuit has been filed for securities fraud The United States District Court for the Southern District of new York against Romeo Power, Inc. (“Romeo”) (NYSE: RMO; RMO.WT) f / k / a RMG Acquisition Corp. (“RMG”) (NYSE: RMG; RMG.U; RMG.WS) on behalf of those who have purchased or acquired Romeo securities between 5th October 2020 and March 30, 2021including (the “Class Period”).
Investor Deadline Reminder: Investors who have purchased or acquired Romeo Securities during the Class Period can request no later than June 15, 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 [email protected];; or click on https://www.ktmc.com/romeo-powerclass-action-lawsuit?utm_source=PR&utm_medium=Link&utm_campaign=romeo
Romeo is an energy technology company focused on the design and manufacture of lithium-ion battery modules and packs for commercial electric vehicles. RMG, a Special Purpose Acquisition Company or SPAC, was formed for the purpose of entering into a merger, stock exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more companies in the fields of diversified resources and industrial materials. On 5th October 2020RMG announced a definitive business combination agreement with Romeo. On December 29, 2020Romeo announced that the business combination with RMG has been completed. The business combination was approved by the RMG shareholders in a special meeting on December 28, 2020 and completed on December 29, 2020.
During the classroom, the defendants represented Romeo’s estimated earnings for 2020 from $ 11 millionand estimated revenue of Romeo for 2021 $ 140 million. Defendants also alleged that Romeo had the capacity and supply to meet end-user 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 impede growth would.
The truth was revealed on March 30, 2021 When Romeo issued a post-market press release and filed a report with the Securities and Exchange Commission on Form 8-K, which published financial results for the past quarter and fiscal year December 31, 2020and held a conference call with investors and analysts. The defendants shocked investors when they announced that Romeo’s production had been hampered by a shortage of battery cells and therefore estimated revenues for 2021 would decrease by about 71-87%. On March 31, 2021Morgan Stanley released a research report in which Romeo’s price target per share was downgraded from $ 12 to $ 7. Following the news, Romeo shares fell from a 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%.
The complaint alleges that the defendants kept silent about the following throughout the class: (1) Romeo only had two battery cell suppliers, not four; (2) The future potential risks that Defendants warned about supply disruptions or shortages had already arisen and were already negatively affecting Romeo’s business, operations and prospects. (3) Romeo did not have the battery cell inventory to meet end-user demand and ramp up production in 2021. (4) Romeo’s supply bottlenecks were a major impediment to Romeo’s sales growth. and (5) Romeo’s supply chain for battery cells was not secured, in fact it was completely endangered and only committed to two battery cell suppliers and the spot market for their inventory in 2021.
Romeo investors are allowed at the latest June 15, 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 collected billions of dollars on behalf of institutional and individual investors The United States and all over 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)
SOURCE Kessler Topaz Meltzer & Check, LLP