NEW YORK, Oct. 19, 2023 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Archer Aviation, Inc. (“Archer” or the “Company”) (NYSE: ACHR) and certain officers. The class action, filed in the United States District Court for the Northern District of California, and docketed under 23-cv-04844, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Archer securities between September 17, 2021 and August 15, 2023, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are a shareholder who purchased or otherwise acquired Archer securities during the Class Period, you have until November 20, 2023 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]
Archer purports to design and develop electric vertical takeoff and landing (“eVTOL”) aircraft for use in urban air mobility networks. Archer’s shares began publicly trading on the New York Stock Exchange in September 2021 when it entered into a business combination with Atlas Crest Investment Corp, a special purpose acquisition company.
Since its inception, Archer has consistently touted the efficacy of its eVTOL aircraft design and flight testing procedures, the profitability of its business partnerships, and its ability to secure from the Federal Aviation Administration (“FAA”) the necessary regulatory certification for the mass production of aircraft for commercial use. Indeed, the Company has stated that it “optimize[s] [its] eVTOL aircraft design for both manufacturing and certification by using advancements in key enabling technologies” and has “secured and strengthened excellent relationships with global leaders and innovators, such as United Airlines, Stellantis, Reef, and the [U.S.] Air Force.” Moreover, the Company claims that “by bringing together a mix of talent with both eVTOL and traditional commercial aerospace backgrounds[,] [it is] building a team that will allow [it] to move through the design, development, and certification of [its] eVTOL aircraft with the [FAA] in an efficient manner[.]”
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and compliance policies.
Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company relied on heavily edited videos of earlier flights to exaggerate the amount of flight testing it had actually performed and the sophistication of its eVTOL aircraft; (ii) the Company had misrepresented the nature and profitability of its business partnerships, (iii) the Company was unlikely to secure FAA certification in the timeframe it had represented to investors, thereby delaying the start of mass production of its aircraft for commercial sales; (iv) accordingly, the Company had overstated its financial position and/or prospects; (v) all of the foregoing, once revealed, was likely to subject the Company to significant financial and/or reputational harm; and (vi) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On August 16, 2023, before the market opened, Grizzly Research released a report on Archer (the “Grizzly Report”). The Grizzly Report alleged, among other issues, that Archer, relies on heavily edited videos of earlier flights to misrepresent the amount of flight testing the Company has actually performed, and to misrepresent the sophistication of Archer’s eVTOL aircraft. Further, the report alleged that investigators who had spoken to former Archer employees, and businesses in close proximity to its flight-testing facilities who witness its flights, confirmed that Archer conducts far fewer flights than the Company has claimed. Finally, the Grizzly Report also alleged that Archer has misrepresented the timelines for (i) its lab and manufacturing facility in San Jose, California, becoming operational, and (ii) securing FAA certification of its prototype aircraft.
On this news, Archer’s stock price fell $0.41 per share, or 6.46%, to close at $5.94 per share on August 16, 2023.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, 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, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz 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 billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
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CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
888-476-6529 ext. 7980
