Join The Class Action Suit
Company: Romeo Power Inc.
A shareholder class action lawsuit has been filed against Romeo Power Inc. (“Romeo” or the “Company”) (NYSE: RMO), formerly known as RMG Acquisition Corp. (“RMG”) (NYSE: RMG), on behalf of investors who purchased or acquired RMO or RMG securities between October 2, 2020 and March 2, 2021 (the “Class Period”).
On October 5, 2020, RMG announced a definitive agreement for a business combination with Romeo that would result in Romeo becoming a publicly listed company. According to the complaint, during the Class Period the defendants represented that Romeo estimated revenue of $11 million for 2020, and estimated revenue of $140 million for 2021. Defendants further represented that Romeo had “key partnerships” and close relationships with LG Chem, Samsung, Murata and SK Innovation, which manufacture battery cells, a key component in Romeo’s battery modules and packs and that they were supplying Romeo with battery cells. Furthermore, Defendants represented that Romeo had the capacity and supply to meet end-user demand for Romeo’s products, that Romeo was not beholden “to any level of the value chain”, that its supply was hedged, and that it did not see any material challenges that would hamper growth. On December 29, 2020, Romeo announced that it completed its business combination with RMG.
Further according to the complaint, “unknown to investors, Romeo 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.” Then, on March 30, 2021, Romeo “shocked investors by disclosing that the Company’s production had been hampered by a shortage in supply of battery cells and that its estimated 2021 revenue would therefore be reduced by approximately 71-87%.” Following this news, shares of the Company’s stock fell $2.04 per share, or nearly 20% in value, to close at $8.33 on March 31, 2021.
Romeo stockholders who purchased shares of the Company’s common stock prior to March 2, 2021 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.