SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP announces that a class action lawsuit has been filed in the Northern District of Ohio on behalf of purchasers of the common stock of Lordstown Motors Corp. (NASDAQ:RIDE), formerly known as DiamondPeak Holdings Corp. (NASDAQ:DPHC), and the common stock warrants of Lordstown Motors Corp. (NASDAQ:RIDEW) and of DiamondPeak Holdings Corp. (NASDAQ:DPHCW and NASDAQ:DPHCU), between August 3, 2020 and March 17, 2021, and all holders of DiamondPeak Holdings Corp. (“DiamondPeak”) common stock entitled to participate in the August 22, 2020 shareholder vote on the merger with Lordstown (the “Class Period”). The case is captioned Rico v. Lordstown Motors Corp., No. 21-cv-00616, and is assigned to Judge Patricia A. Gaughan. The Lordstown Motors class action lawsuit charges Lordstown Motors and certain of its executives with violations of the Securities Exchange Act of 1934.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Lordstown Motors and/or DiamondPeak Class A common stock or warrants to purchase Class A common stock during the Class Period to seek appointment as lead plaintiff in the Lordstown Motors class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Lordstown Motors class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Lordstown Motors class action lawsuit. An investor’s ability to share in any potential future recovery of the Lordstown Motors class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Lordstown Motors class action lawsuit or have questions concerning your rights regarding the Lordstown Motors class action lawsuit, please provide your information here or contact counsel, Jennifer Caringal of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at jcaringal@rgrdlaw.com. Lead plaintiff motions for the Lordstown Motors class action lawsuit must be filed with the court no later than May 17, 2021.
According to its website, Lordstown Motors is an automotive company founded for the purpose of developing and manufacturing light duty electric trucks targeted for sale to fleet customers. Lordstown Motors’ purported flagship vehicle is the “Endurance,” an electric full-size pickup truck. Until November 2020, Lordstown’s shares were privately-held. DiamondPeak was a publicly-traded special purpose acquisition company (also known as a SPAC), which was formed and taken public to raise funds to purchase one or more other businesses. On August 3, 2020, Lordstown and DiamondPeak announced that they had entered into a definitive agreement to merge, after which the combined company would remain listed on the NASDAQ stock exchange under the new ticker symbols “RIDE” and “RIDEW.”
The Lordstown Motors class action lawsuit alleges that, throughout the Class Period, while defendants touted the 100,000 “pre-orders” that Lordstown had obtained for purportedly large “fleet” sales of Endurance trucks, defendants made false and/or misleading statements and/or failed to disclose that: (i) Lordstown had been paying consultants to drum up nefarious pre-order customers; (ii) many of the would-be customers who made these purported pre-orders were either bogus entities or lacked the means to make such purchases and thus would not have credible demand for Lordstown Motors’ Endurance; (iii) Lordstown Motors is not and has not been “on track” to commence production of the Endurance in September 2021; (iv) the first test run of the Endurance led to the vehicle bursting into flames within 10 minutes; and (v) as a result, Lordstown Motors’ public statements were materially false and misleading at all relevant times.
On March 12, 2021, analyst Hindenburg Research published a heavily researched and detailed report on Lordstown Motors entitled: “The Lordstown Motors Mirage: Fake Orders, Undisclosed Production Hurdles, and a Prototype Inferno.” Hindenburg noted that Lordstown Motors has “no revenue and no sellable product,” and wrote that Lordstown Motors “has misled investors on both its demand and production capabilities.” The Hindenburg report concluded that Lordstown Motors’ “orders are largely fictitious and used as a prop to raise capital and confer legitimacy,” and that a former employee “explained how the company is experiencing delays and making ‘drastic’ design modifications, putting [Lordstown Motors] an estimated 3-4 years away from production,” rather than Lordstown Motors being “on track” for a September 2021 production start. On this news, the price of Lordstown Motors common stock fell more than 16%
Then, on March 17, 2021, Lordstown Motors revealed that it had received an inquiry from the U.S. Securities and Exchange Commission related to the matters raised in the Hindenburg Research report. On this news, the market price of Lordstown Motors common stock fell an additional 9%, further damaging investors.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations, and the media as leading lawyers in the industry. Please visit http://www.rgrdlaw.com for more information.
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March 23, 2021 at 08:00PM
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Notice of Lead Plaintiff Deadline for Shareholders in the Lordstown Motors Corp. Class Action Lawsuit - Business Wire
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