SAN FRANCISCO, March 22, 2021 (GLOBE NEWSWIRE) -- Hagens Berman urges Lordstown Motors Corp. (NASDAQ: RIDE) investors with losses in excess of $100,000 to submit your losses now.
Class Period: Aug. 3, 2020 – Mar. 17, 2021
Lead Plaintiff Deadline: May 17, 2021
Visit: www.hbsslaw.com/investor-fraud/RIDE
Contact an Attorney Now: RIDE@hbsslaw.com
844-916-0895
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.
After the markets closed on Mar. 17, 2021, Lordstown disclosed that Lordstown is the subject of an SEC inquiry. Finally, 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.
“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.
About Hagens Berman
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Contact:
Reed Kathrein, 844-916-0895