Kuznicki Law PLLC notifies investors that a class action has commenced in the United States District Court for the Central District of California on behalf of shareholders of Canoo Inc. f/k/a Hennessy Capital Acquisition Corp. IV who purchased shares between August 18, 2020 and March 29, 2021.
Canoo and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.
On or about December 21, 2020, Canoo Holdings became a public entity via merger with Hennessy Capital, with the surviving entity named “Canoo.” On March 29, 2021, post-market, the Company disclosed significant changes to its business model, previously touted by the Company to investors, deemphasizing its engineering services business and no longer focusing on its subscription-based business.
On this news, shares of Canoo plummeted $2.50, or $21.2%, from a March 29, 2021 close of $11.80 per share to close at $9.30 per share on March 30, 2021, on heavy volume.
If you wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the respective securities during the class periods. Members of the class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action. Appointment as Lead Plaintiff is not required to partake in any recovery.
Shareholders have until June 1, 2021 to request that the court appoint them lead plaintiff.