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Lordstown Motors Corp. (RIDE)

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  • Deadline Alert: Kessler Topaz Meltzer & Check, LLP Alerts Investors of Lead Plaintiff Deadline in Securities Fraud Class Action Lawsuit Against Lordstown Motors Corp.
    GlobeNewswire

    Deadline Alert: Kessler Topaz Meltzer & Check, LLP Alerts Investors of Lead Plaintiff Deadline in Securities Fraud Class Action Lawsuit Against Lordstown Motors Corp.

    RADNOR, Pa., May 09, 2021 (GLOBE NEWSWIRE) -- The law firm of Kessler Topaz Meltzer & Check, LLP reminds investors that a securities fraud class action lawsuit has been filed in the United States District Court for the Northern District of Ohio against Lordstown Motors Corp. (NASDAQ: RIDE) (“Lordstown”) f/k/a DiamondPeak Holdings Corp. (NASDAQ: DPHC) (“DiamondPeak”) on behalf of those who purchased or acquired Lordstown securities between August 3, 2020 and March 24, 2021, inclusive (the “Class Period”). Deadline Reminder: Investors who purchased or acquired Lordstown securities during the Class Period may, no later than May 17, 2021, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453 or Adrienne Bell, Esq. (484) 270-1435; toll free at (844) 887-9500; via e-mail at info@ktmc.com; or click https://www.ktmc.com/lordstown-motors-class-action-lawsuit?utm_source=PR&utm_medium=link&utm_campaign=lordstown Lordstown is an automotive company founded for the purpose of developing and manufacturing light duty electric trucks targeted for sale to fleet customers. Lordstown’s purported flagship vehicle is the “Endurance,” an electric full-size pickup truck. DiamondPeak was structured as a special purpose acquisition company. The Class Period commences on August 3, 2020, when Lordstown and DiamondPeak announced that they had entered into a definitive merger agreement. The August 3, 2020 release provided, in relevant part, that the transaction valued Lordstown “at an implied $1.6 billion pro forma equity value,” and that the transaction was expected to deliver approximately $675 million in gross proceeds. The release also announced that the transaction was expected to close in the fourth quarter of 2020. Throughout the Class Period, Lordstown repeatedly lauded its pre-order agreements with prospective customers. Moreover, Lordstown stated numerous times that it was “on track” to begin production of the Endurance in September 2021. However, before the markets opened on March 12, 2021, Hindenburg Research, LLC (“Hindenberg Research”) published a report on Lordstown entitled: “The Lordstown Motors Mirage: Fake Orders, Undisclosed Production Hurdles, and a Prototype Inferno.” The report noted that Lordstown has “no revenue and no sellable product,” and that Lordstown “has misled investors on both its demand and production capabilities.” The report concluded that Lordstown’s “orders are largely fictitious and used as a prop to raise capital and confer legitimacy,” and that a former employee “explained how the company is experiencing delays and making ‘drastic’ design modifications, putting [Lordstown] an estimated 3-4 years away from production,” rather than Lordstown being “on track” for a September 2021 production start. Following this news, the price of Lordstown’s common stock fell approximately 16.5%, down from its March 11, 2021 closing price of $17.71 to a March 12, 2021 close of $14.78. Then, on March 17, 2021, after trading had closed, Lordstown held an earnings call on which the defendants disclosed that Lordstown had received an inquiry from the U.S. Securities and Exchange Commission (“SEC”). Although Lordstown also issued a press release and a Form 8-K announcing its fourth quarter and full year 2020 financial results after trading closed on March 17, 2021, Lordstown failed to disclose the existence of the SEC inquiry in those filings. Following this news, Lordstown’s stock price fell approximately another 9% in aftermarket trading. Finally, on March 24, 2021, during the trading day, Hindenburg Research published additional pictures of the Endurance EV truck after it broke down and had to be loaded onto a tow truck during the filming of a commercial that had been aired just days prior to the common stock of Lordstown being taken public via its combination with DiamondPeak. Following this news Lordstown’s stock price fell another $1.21 per share. The complaint alleges that, throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (1) Lordstown’s purported pre-orders were non-binding; (2) many of the would-be customers who made these purported pre-orders lacked the means to make such purchases and/or would not have credible demand for the Endurance; (3) Lordstown is not and has not been “on track” to commence production of the Endurance in September 2021; (4) the first test run of the Endurance led to the vehicle bursting into flames within 10 minutes; and (5) as a result, Lordstown’s public statements were materially false and misleading at all relevant times. Lordstown investors may, no later than May 17, 2021, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff. Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check, LLP is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com. CONTACT: Kessler Topaz Meltzer & Check, LLPJames Maro, Jr., Esq.Adrienne Bell, Esq.280 King of Prussia RoadRadnor, PA 19087(844) 887-9500 (toll free)info@ktmc.com

  • Lordstown Deadline Alert
    Newsfile

    Lordstown Deadline Alert

    Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $50,000 In Lordstown To Contact Him Directly To Discuss Their Options New York, New York--(Newsfile Corp. - May 9, 2021) - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Lordstown Motors Corp. ("Lordstown" or the "Company") (NASDAQ:RIDE) and reminds investors of the May 17, 2021 deadline to seek the role of lead plaintiff in a federal ...

  • GlobeNewswire

    SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholders with Losses on their Investment in Lordstown Motors Corporation of Class Action Lawsuit and Upcoming Deadline – RIDE; RIDEW; DPHC

    NEW YORK, May 08, 2021 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Lordstown Motors Corp. (“Lordstown” or the “Company”) (formerly known as DiamondPeak Holdings Corp. (“DiamondPeak”)) (NASDAQ: RIDE; RIDEW; DPHC) and certain of its officers. The class action, filed in the United States District Court for the Northern District of Ohio, Eastern Division, and docketed under 21-cv-00760, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Lordstown securities between August 3, 2020 and March 17, 2021, inclusive (the “Class Period”). This action is brought on behalf of the Class for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”), 15 U.S.C. §§ 78j(b) and 78t(a) and Rule 10b-5 promulgated thereunder by the SEC, 17 C.F.R. § 240.10b-5. If you are a shareholder who purchased Lordstown securities during the Class Period, you have until June 8, 2021 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at newaction@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased. [Click here for information about joining the class action] According to its website, Lordstown is an automotive company founded for the purpose of developing and manufacturing light duty electric trucks targeted for sale to fleet customers. The Company’s purported flagship vehicle is the “Endurance,” an electric full-size pickup truck. On August 3, 2020, Lordstown and DiamondPeak announced that they had entered into a definitive merger agreement through which, upon closing, the combined company would remain listed on the NASDAQ stock exchange under the new ticker symbol “RIDE.” DiamondPeak was setup as a special purpose acquisition company (also known as a SPAC). DiamondPeak’s shares traded on the NASDAQ stock exchange under the ticker symbol “DPHC.” The August 3, 2020 release provided, in relevant part, that the transaction valued Lordstown “at an implied $1.6 billion pro forma equity value,” and that the transaction was expected to deliver approximately $675 million in gross proceeds. The release announced that the transaction was expected to close in the fourth quarter of 2020. On October 22, 2020, Lordstown and DiamondPeak announced that DiamondPeak shareholders had approved the merger. On October 23, 2020, Lordstown announced that it had completed the business combination with DiamondPeak, and that beginning on October 26, 2020, Lordstown’s Class A shares would begin trading on the NASDAQ Global Select market under the ticker symbol “RIDE,” and that its warrants would trade on NASDAQ under the symbol “RIDEW.” The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company’s purported pre-orders were non-binding; (ii) many of the would-be customers who made these purported pre-orders lacked the means to make such purchases and/or would not have credible demand for Lordstown’s Endurance; (iii) Lordstown is not and has not been “on track” to commence production of the Endurance in September 2021; (iv) the first test run of the Endurance led to the vehicle bursting into flames within 10 minutes; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times. Before the markets opened on March 12, 2021, analyst Hindenburg Research published a scathing report on Lordstown entitled: “The Lordstown Motors Mirage: Fake Orders, Undisclosed Production Hurdles, and a Prototype Inferno.” As alleged in greater detail below, in this report, Hindenburg noted that Lordstown has “no revenue and no sellable product,” and wrote that the Company “has misled investors on both its demand and production capabilities.” The Hindenburg report concluded that Lordstown’s “orders are largely fictitious and used as a prop to raise capital and confer legitimacy,” and that a former employee “explained how the company is experiencing delays and making ‘drastic’ design modifications, putting [Lordstown] an estimated 3-4 years away from production,” rather than the Company being “on track” for a September 2021 production start. On this news, the price of Lordstown common stock fell approximately 16.5% in one day, down from its March 11, 2021 closing price of $17.71 to a March 12, 2021 close of just $14.78. This represents hundreds of millions of dollars in lost market capitalization. Then on March 17, 2021, after trading had closed, the Company held an earnings call on which Defendant Burns disclosed that Lordstown had received an inquiry from the SEC. Remarkably, although Lordstown also issued a press release and a Form 8-K announcing its fourth quarter and full year 2020 financial results after trading closed on March 17, 2021, the Company failed to disclose the existence of the SEC inquiry in those filings.1 On this news, the stock fell approximately another 9% in aftermarket trading. The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com CONTACT:Robert S. WilloughbyPomerantz LLPrswilloughby@pomlaw.com888-476-6529 ext. 7980