Lawsuit filed for Investors in shares of Lordstown Motors Corp. (NASDAQ: RIDE)

An investor, who purchased shares of Lordstown Motors Corp. (NASDAQ: RIDE), filed a lawsuit over alleged violations of Federal Securities Laws by Lordstown Motors Corp.

Investors who purchased shares of Lordstown Motors Corp. (NASDAQ: RIDE) have certain options and for certain investors are short and strict deadlines running. Deadline: May 17, 2021. Lordstown Motors Corp. (NASDAQ: RIDE investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Lordstown, OH based Lordstown Motors Corp., an automotive company, develops, manufactures, and sells light duty electric trucks targeted for sale to fleet customers.

Lordstown Motors Corp. reported that its annual Total Revenue declined from over $8.28 billion for the 12 months period that ended on January 31, 2019, to $6.46 billion for the 12 months period that ended on January 2020, and that its Net Loss over those respective time periods declined from $673 million to $470.9 million.

On March 12, 2021, a report was published entitled: "The Lordstown Motors Mirage: Fake Orders, Undisclosed Production Hurdles, And A Prototype Inferno" In the report, Hindenburg alleged that, based on "conversations with former employees, business partners and an extensive document review" the Company's book of 100,000 pre-orders "are largely fictitious and used as a prop to raise capital and confer legitimacy." The report went on to say that "[f]ormer employees also shared that the company has completed none of its needed testing or validation, including cold weather testing, durability testing, and Federal Motor Vehicle Safety Standards (FMVSS) testing required by the NHTSA."

Shares of Lordstown Motors Corp. (NASDAQ: RIDE) declined from $348.50 per share on March 10, 2021, to $222.50 per share on March 15, 2021.
According to the complaint the plaintiff alleges on behalf of purchasers of Lordstown Motors Corp. (NASDAQ: RIDE) common shares between August 3, 2020 and March 17, 2021, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between August 3, 2020 and March 17, 2021, the Defendants failed to disclose to investors that the Company’s purported pre-orders were non-binding, that many of the would-be customers who made these purported pre-orders lacked the means to make such purchases and/or would not have credible demand for Lordstown’s Endurance, that Lordstown is not and has not been "on track" to commence production of the Endurance in September 2021, that the first test run of the Endurance led to the vehicle bursting into flames within 10 minutes, and that as a result, Defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.

Those who purchased shares of Lordstown Motors Corp. (NASDAQ: RIDE) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.