The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Romeo Power Inc. f/k/a RMG Acquisition Corp. (RMO) Investors

LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Romeo Power Inc. f/k/a RMG Acquisition Corp. (“Romeo” or the “Company”) (NYSE: RMO) securities between October 5, 2020 and March 30, 2021, inclusive (the “Class Period”). Romeo investors have until June 15, 2021 to file a lead plaintiff motion.

If you are a shareholder who suffered a loss, click here to participate.

On March 30, 2021, Romeo announced that, as a result of a significant supply shortage of battery cells, its fiscal 2021 revenue guidance would be reduced by 71-87%. During a related conference call, the Company revealed that it relied solely on Samsung and LG for its supply of power cells, not four different cell suppliers as Romeo had previously stated.

On this news, the Company’s stock price fell $2.04 per share, or 19.7%, to close at $8.33 per share on March 31, 2021, thereby injuring investors.

The complaint filed in this class action 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) Romeo Power had only two battery cell suppliers, not four; (2) the future potential risks that defendants warned of concerning supply disruption or shortage had already occurred and were already negatively affecting Romeo Power’s business, operations and business prospects; (3) Romeo Power did not have the battery cell inventory to accommodate end-user demand and ramp up production in 2021; (4) Romeo Power’s supply constraint was a material hindrance to Romeo Power’s revenue growth; and (5) Romeo Power’s supply chain for battery cells was not hedged, but in fact, was totally at risk and beholden to just two battery cell suppliers and the spot market for their 2021 inventory; and (6) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

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If you purchased Romeo securities during the Class Period, you may move the Court no later than June 15, 2021 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Romeo 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 Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to [e-mail], or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

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