Join The Class Action Suit
Company: Lordstown Motors Corp.
A shareholder class action lawsuit has been filed against Lordstown Motors Corp. (NASDAQ: RIDE) (“Lordstown” or the “Company”) f/k/a DiamondPeak Holdings Corp. (NASDAQ: DPHC) on behalf of investors who purchased shares of the Company’s stock.
According to the complaint, on March 12, 2021, Hindenburg Research published a scathing report on the electric light duty truck manufacturer entitled “The Lordstown Motors Mirage: Fake Orders, Undisclosed Production Hurdles, and a Prototype Inferno.” According to Hindenburg, the Company’s claimed 100,000 pre-orders for its EV truck were “largely fictitious and used as a prop to raise capital and confer legitimacy.” Hindenburg further cited significant, undisclosed production delays and a prototype that “burst into flames 10 minutes before the test drive” in January 2021, substantiating claims by former employees that the company is not conducting the needed testing or validation required by the NHTSA. Following this news, shares of the Company’s stock fell $2.93 per share, or over 16% in value, to close on March 12, 2021 at $14.78 per share, on heavy trading volume.
Then, on March 17, 2021, the Company held an earnings call during which Defendant Burns disclosed that Lordstown had received an inquiry from the SEC. Remarkably, although Lordstown also issued a press release and a Form 8-K announcing its fourth quarter and full year 2020 financial results after trading closed on March 17, 2021, the Company failed to disclose the existence of the SEC inquiry in those filings. Following this news, shares of the Company’s stock fell an additional $2.08 per share, or over 13% in value, to close on March 18, 2021 at $13.01 per share, again on heavy trading volume.
Lordstown investors who purchased or acquired DPHC or RIDE securities prior to September 21, 2020 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq.) at (484) 258 – 1585, or by completing the information form on this page, for additional information about this action and their legal rights and options.