Kessler Topaz Meltzer & Check, LLP Reminds Investors of Securities Fraud Class Action Lawsuit Filed Against Lordstown Motors Corp.
RADNOR, Pa., March 22, 2021 (GLOBE NEWSWIRE) – Law firm Kessler Topaz Meltzer & Check, LLP announces that a class action lawsuit for securities fraud has been filed in the U.S. District Court for the Northern District of Ohio in Lordstown Motors Corp. (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 17, 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 founded as a special purpose vehicle.
The class period begins on August 3, 2020 when Lordstown and DiamondPeak announced that they have entered into a definitive merger agreement. 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 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 as to both their demand and production capabilities”. Following 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.
Then, on March 17, 2021, after close of trading, Lordstown held a call to profits on which the defendants announced that Lordstown had received a request from the US Securities and Exchange Commission. After the news, the aftermarket share price fell another 9%.
The complaint alleges that throughout the classroom the defendants made false and / or misleading statements and / or failed to disclose that: (i) Lordstown’s alleged pre-orders were non-binding; (ii) 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; (iii) Lordstown is and was not “on track” to begin production of the Endurance in September 2021. (iv) the first endurance test run resulted in the vehicle catching fire within 10 minutes; and (v) 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 plaintiff’s principal representative of the class by Kessler Topaz Meltzer & Check, LLP, or other lawyer, 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 action lawsuits 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. For more information on Kessler Topaz Meltzer & Check, LLP, please visit 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)