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New York, New York--(Newsfile Corp. - June 10, 2021) - Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against Romeo Power, Inc. ("Romeo" or "the Company") (NYSE: RMO), formerly known as RMG Acquisition Corp. ("RMG") (NYSE: RMG), and certain of its officers, on behalf of shareholders who purchased or otherwise acquired Romeo securities between October 2, 2020 and March 30, 2021, both dates inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: www.bgandg.com/rmo.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
On March 30, 2021, Romeo issued a press release announcing its financial and operating results for the fourth quarter of 2020. With respect to its 2021 outlook, citing "supply constraints" and "the significant shortfall in battery cell capacity industrywide," Romeo advised investors that is "now expects its revenue for 2021 to be in the range of $18-40 million"-significantly lower than analyst expectations. On this news, Romeo's stock price fell $2.04 per share, or 19.67%, to close at $8.33 per share on March 31, 2021.
The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and failed to disclose that: (1) it was suffering from an acute shortage of high-quality battery cells, which are key raw materials for Romeo's battery packs and modules, due to supply constraints. Contrary to Defendants' representations, (2) Romeo had only two battery cell suppliers, not four, (3) the future potential risks that Defendants warned of concerning supply disruption or shortage had already occurred and were already negatively affecting Romeo's business, operations and prospects, (4) Romeo did not have the battery cell inventory to accommodate end-user demand and ramp up production in 2021, (5) Romeo's supply constraint was a material hindrance to Romeo's revenue growth, and (6) Romeo's supply chain for battery cells was not hedged, but in fact, was totally at risk and beholden to just two battery cell suppliers and the spot market for their 2021 inventory.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint you can visit the firm's site: www.bgandg.com/rmo or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in Romeo you have until June 15, 2021 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | firstname.lastname@example.org
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/86247