BOCA RATON, Fla., March 18, 2021 (GLOBE NEWSWIRE) -- Recent disclosures that Lordstown Motors Corporation (“Lordstown” or the “Company”) (NASDAQ: RIDE) is a “mirage” with tens of thousands of “fake orders” for its prototype all-electric pickup truck and undisclosed “production hurdles” putting delivery of the vehicle 3-4 years away – “if ever” – coupled with related SEC probe, have prompted the preeminent national law firm Saxena White P.A. to launch an investigation on behalf of investors.
Specifically, Saxena White is investigating potential securities fraud claims on behalf of persons or entities who purchased Lordstown common stock between October 26, 2020 and March 17, 2021, and sustained losses on their investments. If you are a Lordstown investor and have significant losses, you may submit your information at https://www.saxenawhite.com/lordstown-motors-corporation-class-action-lawsuit/. You are also invited to contact David Kaplan (dkaplan@saxenawhite.com), an attorney and Director at Saxena White P.A., to discuss your rights as an investor, at no-cost.
Lordstown is an electric vehicle startup company that held itself out as a savior, promising to restore lost jobs and transform a part of Ohio into the epicenter for electric vehicle production, which the Company dubbed “Voltage Valley.”
In June 2020, the Company revealed its “Endurance” electric pickup truck in a splashy ceremony that received national media attention. During the event, the Company’s CEO, Steve Burns, promoted the Endurance’s growth prospects, declaring that “we have our whole year, our first year of production already pre-sold” and deliveries of the all-electric truck would begin in “early 2021.”
In September 2020, only weeks before going public on Nasdaq through a special purpose acquisition company (“SPAC”), the Company declared that its book of pre-orders for Endurance had reached 40,000. By January 2021, the Company’s announced pre-orders for Endurance had soared to 100,000, which its CEO hailed as “unprecedented in automotive history” and put Lordstown in a position to “revolutionize the pickup truck industry.” The Company consistently represented to investors that the large number of “pre-orders” for the Endurance represented strong commercial demand from actual customers operating fleets of trucks.
However, on March 12, 2021, Hindenburg Research, an investment research firm, issued a scathing report concluding that Lordstown “is an electric vehicle SPAC with no revenue and no sellable product” that “misled investors on both its demand and production capabilities.” The Hindenburg report determined, after “conversations with former employees, business partners and an extensive document review” that Lordstown’s book of 100,000 pre-orders for its proposed EV truck “are largely fictitious and used as a prop to raise capital and confer legitimacy.” In sharp contrast to the Company’s assurances that deliveries of the Endurance would begin in “early 2021,” the Hindenburg report estimated that the Endurance was in fact three to four years away from production. On this news, Lordstown’s share price plummeted 17%.
On March 17, 2021, Lordstown disclosed that the Company was under investigation by the SEC regarding the matters detailed in the Hindenburg report. This disclosure caused the Company’s stock to plunge another 14%.
As a direct result of the Company’s statements regarding the Endurance, and the sharp decline in the market value of the Company’s shares following these recent revelations, investors in the Company’s publicly traded shares suffered significant losses and may be entitled to recoverable damages under the federal securities laws.
Saxena White is investigating whether the Company’s public statements were designed to deceive investors. The investigation is seeking to expose that the Company and its executives knew but concealed and misrepresented that: (i) the number of Endurance pre-orders were fabricated and thus did not accurately reflect demand; (ii) Lordstown had fabricated the pre-orders to give investors a false sense of confidence; and (iii) the Company faced undisclosed production obstacles that would continue to delay production and delivery of the Endurance.
Saxena White P.A., with offices in Florida, New York, Delaware, and California, is a leading national law firm focused on prosecuting securities class actions and other complex litigation on behalf of injured investors. Currently serving as lead counsel in numerous securities fraud class actions nationwide, Saxena White has recovered billions of dollars on behalf of injured investors.
CONTACT INFORMATION
David Kaplan, Esq.
dkaplan@saxenawhite.com
Saxena White P.A.
12750 High Bluff Drive, Suite 475
San Diego, CA 92130
Tel: (858) 987-0860
Fax: (858) 369-0096
www.saxenawhite.com