Fisker Inc.
Exchange: NASDAQ
Ticker: FSR
Date of Filing: 11/22/2023
Court: California Central District
Filing Deadline

01/26/2024

TWERSKY LAW GROUP Notifies Fisker Inc. (FSR) Investors of Class Action

FISKER  – Twersky Law Group, a highly regarded and reputable law firm based in New York, wishes to inform investors about a significant development in the form of a class action lawsuit against Fisker Inc. (“Fisker” or “the Company”) (NASDAQ: FSR) and certain officers of the company. This lawsuit has been filed on behalf of all individuals and entities that purchased or otherwise acquired Fisker securities from August 4, 2023 through November 20, 2023 (the “Class Period”). Investors who acquired Fisker securities during this defined timeframe are strongly encouraged to participate in this case by contacting atara@twerskylawgroup.com. The deadline to file a motion for appointment of lead plaintiff is January 26, 2024.

The fundamental objective of this class action lawsuit is to recover for the benefit of investors who purchased Fisker securities during the Class Period, the losses they sustained as a consequence of the misleading statements made by Defendants in violation of the federal securities laws.

 

ALLEGATIONS AGAINST FISKER

On November 8, 2023, before the market opened, Fisker announced that the completion of the Company’s financial statements would be delayed due to the appointment of a new chief accounting officer (“CAO”) and the departure of the Company’s former CAO. The Company had previously announced former CAO, John Finnucan (“Finnucan”) provided notice of intent to resign on September 19, 2023, effective October 27, 2023. Fisker’s new CAO, Florus Beuting (“Beuting”), was hired effective as of November 6, 2023. The Company advised it “expects to file its Form 10-Q by November 14, 2023.” On this news, the Company’s share price fell $0.38, or 8.7%, to close at $3.99 per share on November 8, 2023, on unusually heavy trading volume. Then, on November 13, 2023, after the market closed, Fisker announced its third quarter 2023 financial results, reporting a loss of $91.0 million and $0.27 loss per share. The Company also reported $78.02 million in selling, general and administrative operating costs and expenses, as well as $9.42 million for research and development, totaling $87.44 million for total operating costs and expenses for the three months ended September 30, 2023. The Company also cut its production forecast for the year and disclosed that, though 4,725 Oceans were built in the third quarter, only 1,097 were delivered to customers. The Company also announced it would be unable to timely file the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023. The Company disclosed, in preparing its results, it had determined “it has material weaknesses” in “internal control over financial reporting.” On that same day, the Company held an earnings call wherein Defendants disclosed that the delay in reporting was due to having a “highly complex quarter” including “very complex accounting along with convertible notes and accounting for derivative” and “things like raw material inventory accounting and finished goods inventory accounting[.]” The Company also disclosed that “delivery and the service infrastructure” was limiting deliveries and, as a result, the Company was “in the process of dramatically overhauling our service and delivery infrastructure.” On this news, the Company’s share price fell $0.77, or 18.7%, to close at $3.34 per share on November 14, 2023, on unusually heavy trading volume. On November 20, 2023, after the market closed, the Company disclosed that Beuting (the CAO hired November 6, 2023) had provided notice of his intent to resign from the Company on November 14, 2023, effective immediately. On this news, the Company’s share price fell $0.35, or 15%, to close at $2.00 per share on November 21, 2023, on unusually heavy trading volume Finally, on November 22, 2023, the Company filed its Form 10-Q quarterly report for the period ended September 30, 2023, which disclosed that the Company had “identified approximately $20 million of expenses” which were “incorrectly recorded primarily as selling, general and administrative expenses in our preliminary earnings results, but were later determined to be associated with production set-up activities” and that “other inventory adjustments were recorded resulting in a $4.0 million increase in net loss subsequent to the preliminary earnings results.” The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Fisker had a material weakness in its internal control over financial reporting; (2) that Fisker had incorrectly accounted for certain costs; (3) that as a result the Company was likely to delay filing its quarterly report; (4) that Fisker’s infrastructure was limiting its ability to deliver its production; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

 

ABOUT FISKER

  • Fisker Inc., established by Henrik Fisker and Geeta Gupta-Fisker, is an American automotive company headquartered in Manhattan Beach, California. It was introduced in 2016 and serves as the continuation of Fisker Automotive.

 

JOIN THIS CASE

It is important to note that a class action lawsuit has already been filed in connection with these allegations. Therefore, for those individuals who suffered financial losses in their investments in Fisker during the Class Period, there is a limited opportunity to seek appointment as a lead plaintiff. This process entails requesting the Court to designate them as the primary representative on behalf of the entire class. The deadline for submitting such a request is January 26, 2023. It is important to emphasize that while becoming a lead plaintiff can offer certain advantages, participation in the recovery process and the potential for financial compensation does not mandate serving as a lead plaintiff.

Twersky Law Group, a distinguished legal firm renowned for its attorneys expertise in handling securities fraud class actions and shareholder derivative suits, who have a long-standing track record of successfully recovering significant sums of money for investors nationwide. With an unwavering commitment to seeking justice for their clients, the firm’s attorneys are resolute in pursuing fair compensation on behalf of those affected by alleged securities law violations. As with any legal matter, it is essential to understand that this announcement constitutes attorney advertising. Past case outcomes and results achieved do not guarantee similar outcomes in this particular case.

Investors who believe they may qualify as potential class members in the class action lawsuit against Fisker are strongly encouraged to reach out directly to the firm for further information and assistance. The knowledgeable legal professionals at Twersky Law Group stand ready to provide guidance and support to investors seeking to protect their rights and pursue the recovery they deserve.



DOCUMENTS


COMPLAINT

PLEASE READ THE COMPLAINT  DOCUMENT BEFORE SIGNING UP FOR THIS CASE.

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