Scott+Scott Attorneys at Law LLP (“Scott+Scott”), an international shareholder and consumer rights litigation firm, reminds investors that class action lawsuits are pending against Lordstown Motors Corp. (“Lordstown” or the “Company”) (NASDAQ: RIDE) and certain of its officers, alleging violations of federal securities laws. If you purchased Lordstown securities between August 3, 2020 and March 24, 2021, inclusive (the “Class Period”), you are encouraged to contact attorney Jonathan Zimmerman for additional information at (888) 398-9312 or jzimmerman@scott-scott.com. The lead plaintiff deadline is May 17, 2021.
Lordstown is an automotive company founded for the purpose of developing and manufacturing light duty electric trucks targeted for sale to fleet customers. The company markets the “Endurance,” an electric, full-size pickup truck, as its flagship vehicle.
The lawsuit alleges, among other things, that the Company made materially false and/or misleading statements and/or failed to disclose 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; and (4) the first test run of the Endurance led to the vehicle bursting into flames within 10 minutes.
On March 12, 2021, analyst Hindenburg Research published a report entitled “The Lordstown Motors Mirage: Fake Orders, Undisclosed Production Hurdles, and a Prototype Inferno.” The report claimed that based on “conversations with former employees, business partners and an extensive document review” the Company’s book of 100,000 pre-orders “are largely fictitious and used as a prop to raise capital and confer legitimacy.” The article further claimed “[f]ormer employees also shared that the company has completed none of its needed testing or validation, including cold weather testing, durability testing, and Federal Motor Vehicle Safety Standards (FMVSS) testing required by the NHTSA [National Highway Traffic Safety Administration].”
On this news, the price of Lordstown common stock fell approximately 16.5% in one day, down from its March 11 closing price of $17.71 to close at $14.78 on March 12, 2021.
On March 17, 2021, after the market closed, the Company held an earnings call on which its CEO and Board Chairman, Stephen S. Burns, disclosed that Lordstown had received an inquiry from the SEC following the Hindenburg Report.
On this news, the Company’s stock fell 13.7% on March 18, 2021, from its previous close price of $15.09 to close at $13.01.
Finally, on March 24, 2020, during the trading day, Hindenburg Research published additional pictures of the Endurance EV truck after it broke down and had to be loaded onto a tow truck during the filming of a commercial that had been aired just days prior to the common stock of Lordstown being taken public.
On this news, the stock price fell another $1.21 per share.
What You Can Do
If you purchased Lordstown securities between August 3, 2020 and March 24, 2021, or if you have questions about this notice or your legal rights, you are encouraged to contact attorney Jonathan Zimmerman (888) 398-9312 or jzimmerman@scott-scott.com.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.
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Contacts
Jonathan Zimmerman
Scott+Scott Attorneys at Law LLP
230 Park Avenue, 17th Floor, New York, NY 10169-1820
(888) 398-9312
jzimmerman@scott-scott.com
