An investor, who purchased shares of Arcimoto Inc (NASDAQ:FUV), filed a lawsuit over alleged violations of Securities Laws by Arcimoto Inc in connection with certain allegedly false and misleading statements made the company's initial public offering ( IPO ) on September 21, 2017.
Eugene, OR based Arcimoto, Inc. provides all-electric three-wheeled motorcycle for daily transportation and went public in September 2017.
According to the complaint the plaintiff alleges that the defendants violated Securities Laws.
More specifically, the plaintiff claims that Arcimoto materially misled the investing public regarding its ability to deliver vehicles to paying customers and failed to disclose that commercial production was not feasible due to the company's inability to produce a safe, reliable, and properly working product.
The plaintiff alleges that following the IPO, investors learned that Arcimoto had only delivered one vehicle to a paying customer during the second half of 2017 and was in no position to begin mass production as it had no facility capable of scaled production.
Shares of Arcimoto Inc (NASDAQ:FUV) declined in December 2017 to as low as $2.54 per share.