SAN FRANCISCO, Dec. 15, 2023 (GLOBE NEWSWIRE) -- Hagens Berman urges Fisker Inc. (NYSE: FSR) investors who suffered substantial losses to submit your losses now.
Class Period: Aug. 4, 2023 – Nov. 20, 2023
Lead Plaintiff Deadline: Jan. 26, 2024
Visit: www.hbsslaw.com/investor-fraud/FSR
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844-916-0895
Fisker Inc. (NYSE: FSR) Securities Fraud Class Action:
“The litigation primarily focuses on Fisker’s cost accounting,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
On Dec. 4, two Wall Street analysts slammed Fisker stock. Evercore ISI reportedly downgraded FSR from outperform (sell) to in line (hold). R.F. Lafferty slashed its FSR price target by nearly 60%, from $7 a share to $3 a share. The analyst downgrades came in response to Fisker recently cutting its 2024 production target to just 10,000 vehicles.
Apart from facing analyst scrutiny, the company and its executives are Defendants in a recently filed securities class action. There, the complaint alleges that Defendants misrepresented and concealed: (1) that Fisker had a material weakness in its internal control over financial reporting; (2) that Fisker had incorrectly accounted for certain costs; (3) that as a result the Company was likely to delay filing its quarterly report; and (4) that Fisker’s infrastructure was limiting its ability to deliver its production.
The truth began to emerge on Nov. 8, 2023, when Fisker announced that it was delaying its Q3 2023 earnings release until after markets close on Nov. 13, 2023. Fisker blamed the delay on the unexplained departure of its, now former, Chief Accounting Officer John Finnucan on Oct. 27, 2023 and the appointment of a replacement effective Nov. 6, 2023.
Then, on Nov. 13, 2023, Fisker released dismal Q3 2023 results, reporting that it lost $91 million in the third quarter and generated revenues of only $71.8 million, well below analysts’ expectations. In addition, the company failed to provide production guidance. It further revealed that material weaknesses in its internal control over financial reporting prevented it from timely filing its quarterly report with the SEC.
On Nov. 20, 2023, The Wall Street Journal reported that Fisker has lost another Chief Accounting Officer. According to the WSJ, Florus Belting, who was named to the post in early Nov., resigned from the company the day after Fisker reported Q3 results.
Finally, on Nov. 22, 2023, the Company filed its Q3 2023 quarterly report on Form 10-Q, which disclosed that the Company had “identified approximately $20 million of expenses” which were “incorrectly recorded primarily as selling, general and administrative expenses in our preliminary earnings results, but were later determined to be associated with production set-up activities” and that “other inventory adjustments were recorded resulting in a $4.0 million increase in net loss subsequent to the preliminary earnings results.”
By Dec. 6, 2023, Fisker shares had reached an all-time low of $1.40 per share.
“Based on Fisker’s recent disclosures and share performance, we are investigating whether the alleged fraudulent period should be extended,” said Mr. Kathrein.
If you invested in Fisker and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the Fisker case and our investigation, read more »
Whistleblowers: Persons with non-public information regarding Fisker should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email FSR@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
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Contact:
Reed Kathrein, 844-916-0895
