Securities class action litigation has been filed on behalf of investors in the securities of Lordstown Motors Corp. (“Lordstown”) (NASDAQ: RIDE; RIDEW). If you are an investor who purchased or otherwise acquired Lordstown securities between August 3, 2020 and March 24, 2021, inclusive (the “Class Period”), including investors who purchased or otherwise acquired warrants to purchase the stock of Lordstown or its predecessor DiamondPeak Holdings Corp. (“DiamondPeak,” collectively, “Lordstown” or the “Company”), as well as holders of DiamondPeak stock entitled to participate in the August 22, 2020 shareholder vote on the merger with Lordstown, you may move the court for appointment as lead plaintiff by no later than May 17, 2021.
You may retain Lieff Cabraser Heimann & Bernstein, LLP, or other attorneys, as your counsel in the action. Recognized by the National Law Journal as one of the nation’s top plaintiffs’ law firms, Lieff Cabraser is committed to safeguarding the rights of investors and upholding the integrity of the market. We have significant experience and a successful track record of representing institutional and individual investors in securities and financial fraud litigation.
Lordstown investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should use the form below or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the Lordstown Securities Class Litigation
Lordstown, headquartered in Lordstown, Ohio, is an automotive company founded for the purpose of developing and manufacturing light duty electric trucks targeted for sale to fleet customers. Its flagship product, the Endurance, is an electric pickup truck. The actions claim that, during the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) the number of Endurance pre-orders was fabricated, and thus inflated, and did not accurately reflect demand; (2) purported customers lacked the means to fulfill their pre-orders; (3) and the Company faced undisclosed production hurdles that would continue to delay production and delivery of the Endurance; and (4) as a result of the foregoing, defendants’ positive statements about Lordstown’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On March 12, 2021, before the market opened, Hindenburg Research reported that “Lordstown is an electric vehicle SPAC with no revenue and no sellable product, which we believe has misled investors on both its demand and production capabilities.” According to the report, while Lordstown consistently pointed to its book of 100,000 pre-orders as proof of strong demand for its Endurance pickup truck, Hindenburg’s “conversations with former employees, business partners and an extensive document review show that the company’s orders are largely fictitious and used as a prop to raise capital and confer legitimacy.” On this news, the price of Lordstown common stock fell approximately 16.5%, from its closing price of $17.71 on March 11, 2021, to close at $14.78 on March 12, 2021.
On March 17, 2021, following the close of the market, Lordstown’s CEO, defendant Stephen Burns, revealed that the Company was under investigation by the Securities and Exchange Commission, a disclosure absent from its fourth quarter and 2020 earnings reports. On this news, the price of Lordstown common stock fell approximately 14%, from its closing price of $15.09 on March 17, 2021, to close at $13.01 on March 18, 2021. The next day Burns announced on national television that “We never said we had orders. We don’t have a product yet so by definition you can’t have orders.”
On March 24, 2021, Hindenburg Research published additional pictures of the Endurance truck after it broke down and had to be loaded onto a tow truck during the filming of a commercial that was aired just days before Lordstown became a publicly traded company. On this news Lordstown’s stock price fell another $1.21 per share, or 9.61%, from its close of $12.59 on March 23, 2021, to close at $11.38 on March 24, 2021.
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Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of the nation’s top plaintiffs’ law firms for fourteen years. In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms “representing the best qualities of the plaintiffs’ bar and that demonstrated unusual dedication and creativity.” Law360 has selected Lieff Cabraser as one of the Top 50 law firms nationwide for litigation, highlighting our firm’s “laser focus” and noting that our firm routinely finds itself “facing off against some of the largest and strongest defense law firms in the world.” Benchmark Litigation has named Lieff Cabraser one of the “Top 10 Plaintiffs’ Firms in America.”