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Philadelphia, Pennsylvania--(Newsfile Corp. - May 14, 2021) - Berger Montague announces its investigation into potential securities fraud claims against Lordstown Motors Corp. (NASDAQ: RIDE). ("Lordstown" or the "Company"). The Firm is investigating these claims on behalf of purchasers of Lordstown securities between August 3, 2020 and March 24, 2021, inclusive (the "Class Period").
If you purchased Lordstown securities during the Class Period, would like to discuss Berger Montague's investigation, or have questions concerning your rights or interests, please contact attorneys Andrew Abramowitz at firstname.lastname@example.org or (215) 875-3015, or Donnell Much at email@example.com or (215) 875-4667, or contact us at www.bergermontague.com/lordstown.
Whistleblowers: Persons with non-public information regarding Lordstown are encouraged to confidentially assist Berger Montague's investigation or take advantage of the SEC Whistleblower program. Under this program, whistleblowers who provide original information may receive rewards totaling up to thirty percent (30%) of recoveries obtained by the SEC. For more information, contact us.
According to a recently filed lawsuit, throughout the Class Period, electric vehicle developer Lordstown and members of its senior management failed to disclose to investors a number of material facts, including that purported pre-orders of the Company's electric pickup truck (known as the "Endurance") were non-binding, and moreover, that Lordstown was not "on track" to commence production of the Endurance in September 2021.
On March 12, 2021, analyst Hindenburg Research published a scathing report on Lordstown. According to Hindenburg, the Company's claimed pre-orders for the Endurance 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. On this news, Lordstown shares fell by 17% in one trading day.
Then, on March 17, 2021, Lordstown disclosed that the Securities and Exchange Commission had commenced an investigation into the Company relating to the accusations made in the Hindenburg report. On March 18, 2021, Lordstown's CEO appeared on CNBC and stated "We never said we had orders. We don't have a product yet, so by definition you can't have orders." Lordstown shares fell approximately another 9% on this news. Finally, on March 24, Hindenburg published additional photos of the Endurance truck malfunctioning, which resulted in further losses to investors.
If you purchased Lordstown securities during the Class Period, you may seek Court appointment as lead plaintiff to represent other injured investors in a class action. The lead plaintiff appointment deadline is May 17, 2021. You do not need to be a lead plaintiff to share in any potential Class recovery.
Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
Andrew Abramowitz, Senior Counsel
Donnell Much, Associate
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