SAN DIEGO--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP reminds investors that a shareholder filed a class action on behalf of all persons who purchased or otherwise acquired common shares of Arrival SA (NASDAQ: ARVL, ARVLW) between November 18, 2020 and November 19, 2021, for violations of the Securities Exchange Act of 1934. Arrival manufactures and distributes commercial electric vehicles (EVs), including vans, cars, and buses.
If you suffered a loss due to Arrival SA's misconduct, click here.
Arrival SA (ARVL, ARVLW) Misled Investors Regarding its Business Prospects
According to the complaint, on March 24, 2021, Arrival combined with CIIG Merger Corp., a special purpose acquisition corporation, and began trading under the symbols ARVL and ARVLW on March 25, 2021. During the class period, defendants purportedly failed to disclose that: (i) the Company would record a substantially greater net loss and adjusted EBITDA loss in the third quarter 2021 compared to third quarter 2020; (ii) would experience far greater capital and operational expense to operate and deploy its microfactories and EV vehicles than it had disclosed; and (iii) would not achieve profitability or provide meaningful revenue in the time periods disclosed. Further, defendants failed to disclose that the Company would not achieve its disclosed production and sales volume or its production rollout deadlines.
The truth came out in a series of disclosures beginning on November 8, 2021. On that date, Arrival announced its financial results for the third quarter 2021, including a loss of €26 million (compared to a loss of €22 million during the same quarter a year earlier), and adjusted EBITDA loss for the quarter of €40 million (compared to a loss of €18 million in the third quarter of 2020). The Company also pulled its 2022 revenue goals and scaled back its long-term projections, pushing its production and sales timeline into later time periods. On this news, Arrival shares plummeted 24%, to close at $13.46 on November 10, 2021.
Then, on November 17, 2021, Arrival announced a $200 million offering of green convertible senior notes due 2026, intended to finance the development of EVs. On the same day, Arrival announced the commencement of an underwritten public offering of 25 million ordinary shares intended to raise around $330 million. On this news, Arrival shares dropped approximately 8%, to close at $9.91 per share on November 18, 2021, harming investors.
If you purchased shares of Arrival SA (ARVL, ARVLW) between November 18, 2020 and November 19, 2021, you have until February 22, 2022, to ask the court to appoint you lead plaintiff for the class.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
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