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 Lordstown Motors Corp. (“Lordstown” or “the Company”) (NASDAQ: RIDEQ) and certain officers of the company. This lawsuit has been filed on behalf of all individuals and entities that held, purchased, or otherwise acquired Sea securities from August 4, 2022 through June 26, 2023 (the “Class Period”). Investors who acquired Lordstown 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 September 25, 2023.
The fundamental objective of this class action lawsuit is to recover for the benefit of investors who purchased Lordstown 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 LORDSTOWN MOTORS CORP.
The lawsuit alleges that, throughout the Class Period, Lordstown represented publicly that it had been working collaboratively with Hon Hai Technology Group (Foxconn) in the context of the companies joint venture. However, on June 27, 2023, Lordstown revealed in a court filing that, contrary to Lordstowns Class Period representations, the Companys vital partnership with Foxconn had long been in jeopardy and Foxconns conduct toward Lordstown had been anything but collaborative. Lordstown filed litigation against Foxconn and several of its subsidiaries in the U.S. Bankruptcy Court for the District of Delaware alleging Foxconns fraud, bad faith, and failure to live up to its commercial and financial commitments to the Company. On this news, the Companys stock price fell $0.54 per share, over 21%, to close at $2.29 per share on June 27, 2023. The complaint filed in this class action alleges that throughout the Class Period, Defendants repeatedly made and/or caused Lordstown to make false and/or misleading statements about Lordstowns relationship with Foxconn suggesting, or in some instances, representing that Foxconn was working cooperatively with Lordstown when in fact, the partnership had stalled soon after the execution of a joint venture agreement and quickly soured.
ABOUT LORDSTOWN MOTORS CORP.
What does Lordstown Motors Corp. do?
- Lordstown Motor Corp, established in 2019, is an promising electric vehicle (EV) startup headquartered in Lordstown, Ohio, USA that had a primary focus on pioneering the development and manufacturing of electric trucks.
- At the heart of Lordstown’s ambitious endeavors stood their flagship creation: the Lordstown Endurance. As an all-electric pickup truck, the Endurance was specifically designed to cater to the needs of commercial fleet customers. The vehicle’s sturdy and rugged build made it an ideal candidate for businesses and organizations seeking robust and efficient transportation solutions for their operations. One of the key features that set the Lordstown Endurance apart from its competitors was its commitment to sustainability and eco-friendliness. With zero tailpipe emissions, the electric truck aimed to reduce the carbon footprint associated with traditional internal combustion engine vehicles, making it a compelling choice for companies looking to adopt greener practices while maintaining their logistical efficiency.
- As part of its growth strategy, Lordstown Motor Corp engaged in various partnerships and collaborations with industry players, investors, and governmental bodies. These alliances aimed to secure the necessary resources, funding, and expertise to bolster their production capabilities, expand market reach, and accelerate the adoption of electric trucks across the commercial sector.
- However, like many startups in the fast-paced and competitive electric vehicle market, Lordstown Motor Corp faced its share of challenges. Bringing a new vehicle to market required substantial investments in research, development, and manufacturing, all while adhering to rigorous safety and regulatory standards. The company navigated these obstacles, striving to prove the viability of their electric truck concept and establish a strong foothold in the industry.
Is Lordstown Motors Corp. owned by GM (General Motors)?
- General Motors sold its stake in Lordstown Motors in 2022 during the fourth quarter following an undisclosed lock-up period. GM owned 7.5 million shares of common stock in Lordstown as part of a SPAC deal that took the Ohio-based automaker public in October 2020.
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 who suffered financial losses in their investments in Lordstown 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 September 25, 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 Lordstown 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.
ABOUT US
For more information as well as to join this case please contact Atara Twersky, Esq. at atara@twerskylawgroup.com. Atara is Principal at Twersky Law Group and of counsel at AF&T Law Firm where she is director of Investor Services. Atara focuses her practice on assisting her clients with increasing their investment portfolio recoveries and ensuring that their portfolios remain healthy and robust. For more information on shareholder recoveries, listen to Atara ’s Pension and Investments Podcast with notable guests in the pension fund Industry that discusses various matters relating to investment portfolios. For more information on Atara and her legal work pertaining to shareholder protection click here.
