PHILADELPHIA, PA / ACCESSWIRE / April 17, 2021 / Kaskela Law LLC announces that a shareholder class action lawsuit has been filed against Lordstown Motors Corp. (NASDAQ: RIDE) ("Lordstown" or the "Company") f/k/a DiamondPeak Holdings Corp. (NASDAQ:DPHC) ("DiamondPeak") on behalf of investors who purchased shares of the Company's stock between August 3, 2020 and March 17, 2021, inclusive (the "Class Period").
Lordstown stockholders who purchased or acquired DPHC or RIDE securities prior to September 21, 2020are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq.) at (484) 258 - 1585, or by email at firstname.lastname@example.org or online at https://kaskelalaw.com/case/xl-fleet-corp/, for additional information about this action and their legal rights and options.
According to the complaint, on March 12, 2021, Hindenburg Research published a scathing report on the electric light duty truck manufacturer entitled "The Lordstown Motors Mirage: Fake Orders, Undisclosed Production Hurdles, and a Prototype Inferno." According to Hindenburg, the Company's claimed 100,000 pre-orders for its EV truck were "largely fictitious and used as a prop to raise capital and confer legitimacy." Hindenburg further cited significant, undisclosed production delays and a prototype that "burst into flames 10 minutes before the test drive" in January 2021, substantiating claims by former employees that the company is not conducting the needed testing or validation required by the NHTSA. Following this news, shares of the Company's stock fell $2.93 per share, or over 16% in value, to close on March 12, 2021 at $14.78 per share, on heavy trading volume.
Then, on March 17, 2021, the Company held an earnings call during which Defendant Burns disclosed that Lordstown had received an inquiry from the SEC. Remarkably, although Lordstown also issued a press release and a Form 8-K announcing its fourth quarter and full year 2020 financial results after trading closed on March 17, 2021, the Company failed to disclose the existence of the SEC inquiry in those filings. Following this news, shares of the Company's stock fell an additional $2.08 per share, or over 13% in value, to close on March 18, 2021 at $13.01 per share, again on heavy trading volume.
Lordstown investors who purchased or acquired DPHC or RIDE securities prior to September 21, 2020are encouraged to contact Kaskela Law LLC for additional information about this action and their legal rights and options.
Kaskela Law LLC exclusively represents investors in securities fraud, corporate governance, and merger & acquisition litigation. For additional information about Kaskela Law LLC please visit www.kaskelalaw.com.
SOURCE: Kaskela Law LLC
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