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SAN FRANCISCO, CA / ACCESSWIRE / May 15, 2021 / Hagens Berman urges Lordstown Motors Corp. (NASDAQ:RIDE) investors to submit your losses now.
RIDE Securities Fraud Class Action:
The complaint alleges defendants misled investors by (i) falsely touting customer pre-orders when they were non-binding agreements, (ii) concealing that many would-be customers lacked the means to make such purchases, (iii) misstating that Lordstown was "on track" to commence production of the Endurance in Sept. 2021, and (iv) omitting to disclose that the first Endurance test run resulted in the vehicle quickly bursting into flames.
Investors began to learn the truth on Mar. 12, 2021, when Hindenburg Research published a report, claiming that the 100,000 pre-orders for Lordstown's EV truck are "largely fictitious and used as a prop to raise capital and confer legitimacy." Hindenburg also cited significant, undisclosed production delays and a prototype that "burst into flames 10 minutes before the test drive" in Jan. 2021, substantiating claims by former employees that the company is not conducting the needed testing or validation required by the NHTSA. On this news, Lordstown shares fell by 17% in one trading day.
Before the markets opened on Mar. 18, 2021, Lordstown's CEO, Stephen Burns, appeared on CNBC stating, "We never said we had orders. We don't have a product yet so by definition you can't have orders." Lordstown shares fell approximately another 9% on this news.
Then, on Mar. 24, Hindenburg hit again, publishing photos of a broken down Endurance on a tow truck during a commercial shoot last summer. The commercial aired several days before Lordstown Motors announced its merger with SPAC DiamondPeak.
Most recently, on Apr. 23, 2021, Goldman Sachs reportedly downgraded Lordstown shares to neutral and slashed its price target by over 50%. According to the report, Goldman analyst Mark Delaney said the company's Endurance pickup truck's failure to complete the Baja, Mexico race earlier this week suggests there is more power train development work to do than he expected.
"We're focused on investors' losses and proving Lordstown duped investors about its order book," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a Lordstown investor and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Lordstown Motors should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email RIDE@hbsslaw.com.
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About Hagens Berman
Hagens Berman is a national law firm with eight offices in eight cities around the country and over eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Reed Kathrein, 844-916-0895
SOURCE: Hagens Berman Sobol Shapiro LLP