An investigation on behalf of investors of Lordstown Motors Corp. (NASDAQ: RIDE) shares over potential securities laws violations by Lordstown Motors Corp. and certain of its directors and officers in connection with certain financial statements was announced.
The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Lordstown Motors Corp. (NASDAQ: RIDE) concerning whether a series of statements by Lordstown Motors Corp. regarding its business, its prospects and its operations were materially false and misleading at the time they were made.
Lordstown, OH based Lordstown Motors Corp., an automotive company, develops, manufactures, and sells light duty electric trucks targeted for sale to fleet customers.
Lordstown Motors Corp. reported that its annual Total Revenue declined from over $8.28 billion for the 12 months period that ended on January 31, 2019, to $6.46 billion for the 12 months period that ended on January 2020, and that its Net Loss over thos respective time periods declined from $673 million to $470.9 million.
On March 12, 2021, a report was published entitled: 'The Lordstown Motors Mirage: Fake Orders, Undisclosed Production Hurdles, And A Prototype Inferno' In the report, Hindenburg alleged 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 report went on to say 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.'
Shares of Lordstown Motors Corp. (NASDAQ: RIDE) declined from $348.50 per share on March 10, 2021, to $222.50 per share on March 15, 2021.