Apr 24, 2021 1:47 PM ET
Legal Newswire POWERED BY LAW.COM
Hagens Berman urges Romeo Power, Inc. Significant Loss Investors to File Your Losses on. A securities class action lawsuit has been filed and certain investors may have valuable claims.
School lesson: 5th October 2020 – – March 30, 2021
Deadline of the main plaintiff: June 15, 2021
Contact an attorney now: [email protected]
The complaint focuses on Romeo’s misrepresentation and omissions regarding access to battery cells, a key component of the company’s battery modules and packages.
During the class, Romeo highlighted the company’s 4 key battery cell supply partners, which in turn eliminated the supply chain risks and supported the high sales projections ($ 11 million for 2020 and $ 140 million for 2021). The company repeatedly reassured investors that it has enough long-term contracts to deliver enough battery cells despite the tight supply.
But the truth emerged March 30, 2021When Romeo released a dismal outlook for 2021, he reduced his 2021 earnings by a whopping 71% – 81%, claiming the shortage was due to a shortage of battery cells. In a call for profits later that day, management responded to the delivery restriction and admitted that Romeo was only dependent on two (not 4, as previously advertised) battery cell suppliers.
Analysts were shocked by the news when Morgan Stanley lowered its price target on Romeo stock $ 12 to $ 7citing the previously not considered risk of the supply chain for battery cells and the dramatically lower sales estimate for 2021 as drivers.
In response to this news, Romeo shares fell $ 2.04 per share or nearly 20% in a single trading day.
“We are focusing on investor losses and proving that Romeo misled investors by misrepresenting real supply chain risks,” he said Reed Kathrein, the Hagens Berman partner who led the investigation.
If you are one Romeo Power Click here to discuss your legal rights with Hagens Berman.
Whistleblower: People with non-public information too Romeo Power should review their options to help with the investigation or use 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. Call for more information Reed Kathrein at the 844-916-0895 or E-Mail [email protected]
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