An investigation on behalf of current long term investors in Romeo Power, Inc. (NYSE:RMO) shares over possible breaches of fiduciary duty by certain officers and directors was announced and NYSE:RMO stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 08/10/2021 -- An investigation on behalf of current long-term investors in shares of Romeo Power, Inc. (NYSE: RMO) concerning potential breaches of fiduciary duties by certain directors and officers of Romeo Power, Inc. was announced.
Investors who are current long term investors in Romeo Power, Inc. (NYSE: RMO) shares, have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
The investigation by a law firm for current long term investors in NYSE: RMO stocks follows a lawsuit filed against Romeo Power, Inc. over alleged securities laws violations. The investigation on behalf of current long term investors in NYSE: RMO stocks, concerns whether certain Romeo Power directors are liable in connection with the allegations made in that lawsuit.
According to that complaint filed in the U.S. District Court for the Southern District of New York the plaintiff alleges that Romeo Power, Inc was suffering from an acute shortage of high quality battery cells, which are key raw materials for Romeo's battery packs and modules, due to supply constraints. Contrary to Defendants' representations, that Romeo Power, Inc had only two battery cell suppliers, not four, that the future potential risks that Defendants warned of concerning supply disruption or shortage had already occurred and were already negatively affecting Romeo's business, operations and prospects, that Romeo Power, Inc did not have the battery cell inventory to accommodate end-user demand and ramp up production in 2021, that Romeo's supply constraint was a material hindrance to Romeo's revenue growth, and that Romeo'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. Given the supply constraint that Romeo was experiencing during the Class Period, Defendants had no reasonable basis to represent that the Company had the ability to meet customer demand and that it would support growth in revenue in 2021.
Those who purchased shares of Romeo Power, Inc. (NYSE: RMO) have certain options and should contact the Shareholders Foundation.
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