OAKLAND, Calif.--(BUSINESS WIRE)--XL Fleet Corp. shares dropped substantially after Muddy Waters Research reported that XL Fleet has exaggerated its business prospects, inflates its sales pipeline, exaggerates its client base, and overstates its technological capabilities. Following the report, XL stock dropped more than 13% on March 3, 2021, and continued to plummet to close at $12 per share on March 4th, causing significant harm to investors. Gibbs Law Group is investigating a potential XL Securities Class Action Lawsuit on behalf of investors who lost money in XL Fleet Corp. (NYSE: XL).
To speak with an attorney regarding this class action lawsuit investigation, click here, or call (888) 410-2925.
On March 3, 2021, Muddy Waters Research reported that XL Fleet Corp. has misled investors about its sales pipeline and customer base. Specifically, the report cited interviews with former employees who claim that “at least 18 of 33 customers XL featured were inactive.” According to the report, the former employees were pressured to exaggerate their sales pipelines. Additionally, Muddy Waters Research claims that XL misleads customers about its performance, and that "customer reorder rates are in reality quite low.”
The report also questioned XL’s technological capacity, alleging that the company generally has “weak technology” and is likely unable to follow through on its “announcement of future class 7-8 upfits.”
Following this news, XL’s stock dropped more than 13% at close of market on Wednesday, March 3, 2021, causing significant harm to investors.
What Should XL Fleet Corp. Investors Do?
If you invested in XL Fleet Corp, visit our website or contact our securities team directly at (888) 410-2925 to discuss how you may be able to recover your losses. Our investigation concerns whether XL Fleet Corp. has violated federal securities laws and failed to disclose information pertinent to investors.
About Gibbs Law Group
Gibbs Law Group represents individual and institutional investors throughout the country in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and our attorneys have received numerous honors for their work, including “Best Lawyers in America,” “Top Plaintiff Lawyers in California,” “California Lawyer Attorney of the Year,” “Top Class Action Attorneys Under 40,” “Consumer Protection MVP,” and “Top Cybersecurity/ Privacy Attorneys Under 40.”
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