Lordstown Motors Corp. (RIDE)
Class Action & Lead Plaintiff Deadline: May 17, 2021
Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against Lordstown Motors Corp.
("Lordstown Motor" or "the Company") (NASDAQ: RIDE) and certain of its officers, on behalf of shareholders who purchased or otherwise acquired Lordstown securities between August 3, 2020 and March 24, 2021, inclusive (the "Class Period").
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
On March 12, 2021, Hindenburg Research published an article, “The Lordstown Motors Mirage: Fake Orders, Undisclosed Production Hurdles, And A Prototype Inferno”. The report claimed 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 article continued to state 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 [National Highway Traffic Safety Administration].” Following this news, Lordstown Motor stock dropped during intraday trading on March 12, 2021.
Then on March 17, 2021, Lordstown announced that it is the subject of an SEC inquiry for information following the release of the Hindenburg Research report. Also, before markets opened on March 18, 2021, Stephen Burns, Lordstown’s CEO, was on CNBC and stated “We never said we had orders. We don’t have a product yet so by definition you can’t have orders.” Following this news Lordstown stock dropped roughly 9%.
A class action lawsuit has already been filed. You can review a copy of the Complaint and sign the certification form or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in Lordstown you have until May 17, 2021 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.