San Francisco, Calif. – (Newsfile Corp. – March 20, 2021) – Hagens Berman calls on Lordstown Motors Corp. (NASDAQ: RIDE) Investors with losses in excess of $ 100,000 Submit your losses now.
Teaching time: August 3, 2020 – March 17, 2021
Lead plaintiff deadline: 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) failing to mention that many potential customers lacked the means to make such purchases , (iii) incorrectly stated Lordstown “on track” to begin production of the Endurance in September 2021, and (iv) without disclosing that the first Endurance test run caused the vehicle to quickly go up in flames.
Investors began to learn the truth on March 12, 2021 when Hindenburg Research released a report claiming the 100,000 pre-orders for Lordstown’s EV truck were “largely fictitious and used as a prop to raise capital and legitimize”. Hindenburg also cited significant undisclosed production delays and a prototype that “went up in flames 10 minutes before the test drive” in January 2021, backing claims by former employees that the company is not performing the tests or validations required by the NHTSA. In the news, Lordstown shares fell 17% in one trading day.
After markets closed on March 17, 2021, Lordstown announced that Lordstown is the subject of an SEC investigation. Before the markets opened on March 18, 2021, Stephen Burns, CEO of Lordstown, 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.
“We’re focusing on investor losses and proving that Lordstown cheated on investors about its backlog,” said Reed Kathrein, the Hagens Berman partner who led the investigation.
The story goes on
If you are a Lordstown investor and are experiencing 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 consider 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. For more information, call Reed Kathrein at 844-916-0895 or send an email to [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.
Reed Kathrein, 844-916-0895
The source version of this press release can be found at https://www.newsfilecorp.com/release/78003