SAN FRANCISCO, April 5, 2021 / PRNewswire / – Hagens Berman Urges Lordstown Motors Corp. Investors (NASDAQ: RIDE) urges you to file your losses now.
School lesson: August 3, 2020 – – March 24, 2021
Deadline of the main plaintiff: May 17, 2021
Contact an attorney now: [email protected]
Class action lawsuit against RIDE Securities Fraud:
The complaint alleges that defendants misled investors by (i) falsely promoting customer pre-orders when they were non-binding agreements, (ii) by concealing that many potential customers lacked the means to make such purchases , (iii) Lordstown incorrectly stated “on track to begin producing the Endurance in.” September 2021and (iv) omitting the disclosure that the initial endurance test run resulted in the vehicle quickly bursting into flames.
Investors began to learn the truth March 12, 2021When Hindenburg Research released a report claiming that the 100,000 pre-orders for Lordstown’s EV truck “are largely fictional and serve as a prop to raise capital and give legitimacy”. Hindenburg also cited significant, unknown production delays and a prototype that “went up in flames 10 minutes before the test drive” Jan. 2021This justifies claims by former employees that the company is not performing the required testing or validation required by the NHTSA. In the news, Lordstown shares fell 17% in one trading day.
Before the markets opened March 18, 2021, Lordstown’s CEO, Stephen Burns, appeared on CNBC and stated, “We never said we had orders. We don’t have a product yet, so by definition you can’t have orders.” Lordstown shares fell another 9% on the news.
Then next March 24thHindenburg struck again, posting photos of a broken endurance on a tow truck during a commercial shoot last summer. The commercial aired a few days prior to the announcement that Lordstown Motors would merge with SPAC DiamondPeak.
“We’re focusing on investor losses and proving that Lordstown cheated on investors about its backlog,” he said Reed Kathrein, the Hagens Berman partner who led the investigation.
If you are a Lordstown investor and experience significant losses or have knowledge that may aid the company’s investigation, click here to discuss your statutory rights with Hagens Berman.
Whistleblowers: Individuals with nonpublic information about Lordstown Motors should review their options to help with the investigation or to take advantage of the SEC’s whistleblower program. Under the new program, whistleblowers who provide original information can receive rewards of up to 30 percent for each successful SEC recovery. Please call for more information Reed Kathrein at 844-916-0895 or by email [email protected].
About Hagens Berman
Hagens Berman is a national law firm with eight offices in eight cities across the country and over eighty attorneys. The firm represents investors, whistleblowers, employees and consumers in complex legal disputes. More information about the company and its achievements can be found at hbsslaw.com. For the latest news, visit our newsroom or follow us on Twitter @classactionlaw.
SOURCE Hagens Berman Sobol Shapiro LLP