SAN FRANCISCO, CA / ACCESSWIRE / March 28, 2021 / Hagens Berman calls on Lordstown Motors Corp.’s investors (NASDAQ: RIDE) urges you to file 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 the defendants misled investors by (i) falsely promoting customer pre-orders as non-binding agreements, (ii) failing to mention that many potential customers did not have the means to purchase them To make purchases, (iii) incorrectly specifying Lordstown. “On Track” to begin production of the Endurance in September 2021 and (iv) with no disclosure that the first Endurance test run resulted in the vehicle quickly going 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 testing or validation required by the NHTSA. In the news, Lordstown shares fell 17% in one trading day.
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.
More recently, on March 24th, Hindenburg 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.
On March 25, 2021, Lordstown filed its annual report showing that the SEC directed the company to hand over documents related to the SPAC merger and pre-orders of its vehicles.
The story goes on
“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.
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.
Whistleblower: Individuals with nonpublic information about Lordstown Motors should consider their options to help with the investigation or to 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. Further information is available from Reed Kathrein at 844-916-0895 or send an email to [email protected]
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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
SOURCE: Hagens Berman Sobol Shapiro LLP
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