A shareholder class action lawsuit has been filed against QuantumScape Corporation (“QuantumScape” or the “Company”) (NYSE: QS) on behalf of investors who purchased the Company’s securities between November 27, 2020 and December 31, 2020, inclusive (the “Class Period”).
QuantumScape develops and commercializes solid-state lithium-metal batteries for electric vehicles (“EVs”). The Company was founded in 2010 and is headquartered in San Jose, California. QuantumScape was taken public through a combination with a special purpose acquisition corporation (“SPAC”), Kensington Capital Acquisition Corp. (“Kensington”), in a transaction completed on November 27, 2020.
According to the complaint, throughout the Class Period, defendants made materially false and misleading statements about the strength of QuantumScape’s business, operations and financial prospects. Among other things, in connection their claims that the Company was “developing next generation battery technology for EVs and other applications,” defendants stated that they “believe[d] that [the Company’s] technology [would] enable a new category of battery that meets the requirements for broader market adoption” and that the “lithium-metal solid-state battery technology that . . . QuantumScape is developing is being designed to offer greater energy density, longer life, faster charging, and greater safety when compared to today’s conventional lithium-ion batteries.”
Further according to the complaint, during the Class Period the defendants were concealing multiple known risks with QuantumScape’s solid state battery development and design that rendered the batteries “completely unacceptable for real world field electric vehicle performance.” Specifically, as would later be revealed, the power of QuantumScape batteries “will only last for 260 cycles or about 75,000 miles of aggressive driving” and, because solid state batteries are temperature sensitive, “power and cycle tests at 30 and 45 degrees above would have been significantly worse if run even a few degrees lower.”
On January 4, 2021, an article was published on Seeking Alpha pointing to several risks with QuantumScape’s solid-state batteries that make it “completely unacceptable for real world field electric vehicles.” Specifically, it stated that the battery’s power means it “will only last for 260 cycles or about 75,000 miles of aggressive driving.” As solid-state batteries are temperature sensitive, “the power and cycle tests at 30 and 45 degrees above would have been significantly worse if run even a few degrees lower.” On this news, the Company’s stock price fell $34.49, or approximately 40.84%, to close at $49.96 per share on January 4, 2021, thereby injuring investors.
QuantumScape investors who purchased or acquired shares of the Company’s stock prior to December 31, 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.