Kessler Topaz Meltzer & Check, LLP Reminds Investors of Securities Fraud Class Action Lawsuit Filed Against Romeo Power, Inc.
RADNOR, Pa., June 8, 2021 / PRNewswire / – The law firm Kessler Topaz Meltzer & Check, LLP reminds Romeo Power, Inc. (“Romeo”) (NYSE: RMO; RMO.WT) f / k / a RMG Acquisition Corp. (“RMG”) (NYSE: RMG; RMG.U; RMG.WS) Investor that a class action lawsuit for securities fraud has been filed on behalf of those who hold Romeo securities between. bought or acquired 5th October 2020 and March 30, 2021, including (the “Class Period”).
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Investor Deadline Reminder: Investors who have bought or acquired Romeo Securities during the Class Period can no later than June 15, 2021to be appointed as the group’s lead plaintiff. 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; by email to firstname.lastname@example.org; 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 vehicles. RMG, a special purpose vehicle for acquisition, or SPAC, was formed for the purpose of a merger, stock exchange, asset acquisition, share purchase, restructuring or similar business combination with one or more companies in the fields of diversified commodities and industrial materials. On 5th October 2020, RMG announced a definitive business combination agreement with Romeo. On December 29, 2020Romeo announced the completion of a business combination with RMG. 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 class action period, defendants argued that Romeo had estimated 2020 revenues of $ 11 million, and for 2021 Romeo will have estimated sales of $ 140 million. Defendants further alleged that Romeo had the capacity and supply to meet end-user demand for Romeo’s products, that Romeo was not required to be “at any stage of the value chain”, that its delivery was secured and that it had not seen any material challenges that would hinder growth.
The story goes on
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 disclosing his financial results for the past quarter and year December 31, 2020and held a conference call with investors and analysts. Defendants shocked investors by stating that Romeo’s production had been hampered by a shortage of battery cells and that estimated revenues would therefore decline by around 71-87% in 2021. On March 31, 2021, Morgan Stanley released a research report setting Romeo’s price target per share of $ 12 to $ 7. After this 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 just under 20%.
The complaint alleges that throughout the collection period the defendants kept silent: (1) Romeo only had two battery cell suppliers, not four; (2) the future potential risks that Defendants have warned of regarding supply disruptions or bottlenecks had already materialized and had a negative impact on 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 restriction was 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 compromised and only committed to two battery cell suppliers and the spot market for their inventory in 2021.
Romeo investors can be at the latest June 15, 2021, seek to be appointed as lead class agent through Kessler Topaz Meltzer & Check, LLP, or other legal counsel, or may 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 the conduct of the dispute. To be appointed as a lead plaintiff, the court must determine that the class plaintiff’s claim is typical of the claims of other class plaintiffs and that the class plaintiff is adequately representing the class action. Your ability to participate in a recovery will not be affected by whether or not you want to 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 state and federal laws. Kessler Topaz Meltzer & Check, LLP is a driving force behind corporate governance reform, recovering billions of dollars on behalf of institutional and private investors The United States and all over the world. The firm represents investors, consumers and whistleblowers (individuals who report fraudulent practices against the government and participate in recovery of 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 Topas Meltzer & Check, LLP
James Maro, Jr., Esq.
Adrienne Bell, Esq.
Radnor, PA 19087
(844) 887-9500 (toll free)
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