Hagens Berman urges Lordstown Motors Corp. investors with significant losses to submit your losses .
Contact an Attorney Now: RIDE@hbsslaw.com
Lordstown Motors Corp. Investigation:
The investigation concerns whether Lordstown has misrepresented its demand and production capabilities for its EV trucks.
Since going public via a SPAC, Lordstown has touted its growth prospects by consistently pointing to its book of 100,000 pre-orders. For example, on Dec. 23, 2020, the Company announced a letter of intent to sell 14,000 trucks to E Squared Energy, supposedly representing $735 million in sales.
On Mar. 12, 2021, analyst Hindenburg Research publishing a scathing report entitled “The Lordstown Motors Mirage: Fake Orders, Undisclosed Production Hurdles, And A Prototype Inferno.”
Based on its lengthy forensic research, including interviews with former employees and business partners, Hindenburg concludes “the company’s orders are largely fictitious and used as a prop to raise capital and confer legitimacy.” Hindenburg also avers “[m]any of the supposed customers do not operate fleets nor do many have the means to actually make the stated purchasers,” including E-Fleet. Another assertion in the report: “One senior employee told us that, while working with [the CEO] for a couple of years, they saw more questionable and unethical business practices than they had seen in their entire career.” In addition, “[f]ormer employees also shared that the company has completed none of its needed testing or validation,” the report said.
Most recently, on Mar. 17, 2021, Lordstown’s CEO Steve Burns reportedly admitted on an earnings call that the company is the subject of an SEC request for information and that Lordstown has formed a special committee to conduct an internal review.
In response, the price of Lordstown shares sharply fell.
“We’re focused on investors’ losses and whether Lordstown may have duped investors about its order book,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
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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Contact: Reed Kathrein, 844-916-0895