A lawsuit was filed on behalf of investors in Lordstown Motors Corp. (NASDAQ:RIDE) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 04/07/2021 -- An investor who purchased NASDAQ: RIDE shares of filed a lawsuit against Lordstown Motors Corp. over alleged Securities Laws violations.
Investors who purchased shares of Lordstown Motors Corp. (NASDAQ: RIDE) have certain options and for certain investors are short and strict deadlines running. Deadline: May 17, 2021. Lordstown Motors Corp. (NASDAQ: RIDE investors should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
Lordstown, OH based Lordstown Motors Corp., an automotive company, develops, manufactures, and sells light duty electric trucks targeted for sale to fleet customers.
On March 12, 2021, a report was published entitled: "The Lordstown Motors Mirage: Fake Orders, Undisclosed Production Hurdles, And A Prototype Inferno" In the report, Hindenburg alleged 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 report went on to say that "[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."
The plaintiff claims that between August 3, 2020 and March 17, 2021, the Defendants failed to disclose to investors that the Company's purported pre-orders were non-binding, that 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, that Lordstown is not and has not been "on track" to commence production of the Endurance in September 2021, that the first test run of the Endurance led to the vehicle bursting into flames within 10 minutes, and that 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.
Those who purchased shares of Lordstown Motors Corp. (NASDAQ: RIDE) have certain options and should contact the Shareholders Foundation.
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