BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Lordstown Motors Corp. (“Lordstown” or the “Company”) (NASDAQ: RIDE) securities between August 3, 2020 and March 17, 2021, inclusive (the “Class Period”). Lordstown investors have until May 17, 2021 to file a lead plaintiff motion.
Investors suffering losses on their Lordstown investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
On March 12, 2021, Hindenburg Research published a report alleging that Lordstown has “no revenue and no sellable product.” Though the Company has “consistently pointed to its book of 100,000 pre-orders as proof of deep demand of its proposed EV truck,” the report alleged that these “orders are largely fictitious” and merely formed a “marketing relationship” with no obligation to purchase products.
On this news, the Company’s share price fell $2.93, or 16.5%, to close at $14.78 on March 12, 2021, thereby injuring investors.
Then on March 17, 2021, after trading had closed, the Company held an earnings call disclosing that Lordstown had received an inquiry from the Securities & Exchange Commission (“SEC”).
On this news, the stock fell approximately another 9% in aftermarket trading.
The complaint filed alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Company’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 Lordstown’s 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, Defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
If you purchased Lordstown securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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