Kuznicki Law PLLC notifies investors that a class action has commenced in the United States District Court for the Northern District of Ohio on behalf of shareholders of Lordstown Motors Corp. f/k/a DiamondPeak Holdings Corp who purchased shares between August 20, 2020 and March 17, 2021.
Lordstown and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.
On March 12, 2021, pre-market, Hindenburg Research reported that the Company has “no revenue and no sellable product,” and that it “has misled investors on both its demand and production capabilities.” Further, the report noted that the Company’s “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] an estimated 3-4 years away from production,” rather than it being “on track” for a September 2021 production start.
Then, on March 17, 2021, post-market, the Company disclosed during an earnings call that it had received an inquiry from the U.S. Securities and Exchange Commission, despite not including that disclosure in its Form 8-K announcing its fourth quarter and full year 2020 financial results, filed after trading closed that same day.
On this news, shares of Lordstown plummeted.
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 May 24, 2021 to request that the court appoint them lead plaintiff.