LORDSTOWN MOTORS ALERT: Bragar Eagel & Squire, P.C. Announces That a Class Action Lawsuit Has Been Filed Against Lordstown Motors Corp. and Encourages Investors to Contact the Firm
NEW YORK–(BUSINESS WIRE) – Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, has announced that Lordstown Motors Corp. has been opened in the United States District Court for the Northern District of Ohio on behalf of investors. (NASDAQ: RIDE) securities between August 3, 2020 and March 17, 2021 inclusive (the “Class Period”). Investors have until May 17, 2021 to apply to the court for appointment as the lead plaintiff in the lawsuit.
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According to its website, Lordstown is an automotive company that was founded for the purpose of developing and manufacturing light electric vehicles for sale to fleet customers. The company’s alleged flagship is the “Endurance,” a full-size electric pickup truck.
On March 12, 2021, analyst Hindenburg Research published a damning report on Lordstown entitled, “The Lordstown Motors Mirage: Wrong Orders, Unknown Manufacturing Hurdles, and a Prototype Inferno.” In that report, Hindenburg stated that Lordstown “had no revenue and has no salable product “, writing that the company” has misled investors about both its demand and production capabilities. ” The Hindenburg Report concluded that Lordstown’s “assignments are largely fictional and serve as props to raise capital and give legitimacy,” and that a former employee “explained how the company is experiencing delays and making” drastic “design changes [Lordstown] estimated 3-4 years away from production ”instead of the company being“ on track ”to start production in September 2021.
In that news, Lordstown common stock fell approximately 16.5% in one day from its closing price on March 11, 2021 of $ 17.71 to a closing price on March 12, 2021 of just $ 14.78. This equates to a lost market cap of hundreds of millions of dollars.
On March 17, 2021, after close of trading, the company issued a call for profits indicating that Lordstown had received an inquiry 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.
In the news, the stock fell another 9% in aftermarket trading.
The complaint, filed on March 18, 2021, alleges that defendants made materially false and misleading statements about the company’s business throughout the class period. In particular, Defendants made false and / or misleading statements and / or failed to disclose that: (i) the Company’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 lacked credible demand for Lordstown’s perseverance; (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, the Company’s public statements at all relevant times have been materially false and misleading.
If you have purchased Lordstown Motors securities during the class period and suffered a loss, are a long-term shareholder, have information, want to learn more about these claims, or have questions about this announcement or your rights or interests in relation to them please contact to Brandon Walker, Melissa Fortunato, or Marion Passmore by email at firstname.lastname@example.org, by phone at (212) 355-4648, or by completing this contact form. There are no costs or obligations for you.
About Bragar Eagel & Squire, PC:
Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivatives and other complex litigation in state and federal courts across the country. More information about the company can be found at www.bespc.com. Lawyer advertising. Previous results do not guarantee similar results.