NEW YORK--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Northern District of Ohio on behalf of those who acquired Lordstown Motors Corp. (“Lordstown” or the “Company”) (NASDAQ: RIDE) securities from August 3, 2020 through March 17, 2021 (the “Class Period”). Investors have until May 17, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Before the markets opened on March 12, 2021, analyst Hindenburg Research published a scathing report on the electric light duty truck manufacturer entitled “The Lordstown Motors Mirage: Fake Orders, Undisclosed Production Hurdles, and a Prototype Inferno.” According to Hindenburg, the company’s claimed 100,000 pre-orders for its EV truck are “largely fictitious and used as a prop to raise capital and confer legitimacy.” Hindenburg further cited significant, undisclosed production delays and a prototype that “burst into flames 10 minutes before the test drive” in January 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 $2.93 per share, or approximately 16.5%, from $17.71 per share to close at $14.78 per share on March 12, 2021.
Then, after the markets closed on March 17, 2021, reports emerged that Lordstown disclosed that the Company is the subject of an SEC inquiry for information following the release of the Hindenburg Research report. Then before the markets opened on March 18, 2021, Lordstown’s CEO, Stephen Burns, appeared on CNBC and stated “We never said we had orders. We don’t have a product yet so by definition you can’t have orders.” On this news, Lordstown shares fell by $2.08 per share, or approximately 13.8%, from $15.09 per share to close at $13.01 per share on March 18, 2021.
If you purchased or otherwise acquired Lordstown securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
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