Lawsuit filed for Investors in shares of Fisker Inc. (NYSE: FSR)

An investor, who purchased shares of Fisker Inc. (NYSE: FSR), filed a lawsuit alleged violations of Federal Securities Laws by Fisker Inc. in connection with certain allegedly false and misleading statements.

Investors who purchased shares of Fisker Inc. (NYSE: FSR) have certain options and for certain investors are short and strict deadlines running. Deadline: January 26, 2024. NYSE: FSR investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Manhattan Beach, CA based Fisker Inc. develops, manufactures, markets, leases, or sells electric vehicles.

On November 8, 2023, Fisker Inc. announced that the completion of the Company's financial statements would be delayed due to the appointment of a new chief accounting officer ("CAO") and the departure of the Company's former CAO. The Company had previously announced former CAO, John Finnucan ("Finnucan") provided notice of intent to resign on September 19, 2023, effective October 27, 2023. Fisker's new CAO, Florus Beuting ("Beuting"), was hired effective as of November 6, 2023. The Company advised it "expects to file its Form 10-Q by November 14, 2023."

Then, on November 13, 2023, Fisker Inc. announced its third quarter 2023 financial results, reporting a loss of $91.0 million and $0.27 loss per share. The Company also reported $78.02 million in selling, general and administrative operating costs and expenses, as well as $9.42 million for research and development, totaling $87.44 million for total operating costs and expenses for the three months ended September 30, 2023. The Company also cut its production forecast for the year and disclosed that, though 4,725 Oceans were built in the third quarter, only 1,097 were delivered to customers. The Company also announced it would be unable to timely file the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2023. The Company disclosed, in preparing its results, it had determined "it has material weaknesses" in "internal control over financial reporting."
On that same day, Fisker Inc. held an earnings call wherein Defendants disclosed that the delay in reporting was due to having a "highly complex quarter" including "very complex accounting along with convertible notes and accounting for derivative" and "things like raw material inventory accounting and finished goods inventory accounting[.]" The Company also disclosed that "delivery and the service infrastructure" was limiting deliveries and, as a result, the Company was "in the process of dramatically overhauling our service and delivery infrastructure."

On November 20, 2023, Fisker Inc. disclosed that Beuting (the CAO hired November 6, 2023) had provided notice of his intent to resign from the Company on November 14, 2023, effective immediately. On this news, the Company's share price fell $0.35, or 15%, to close at $2.00 per share on November 21, 2023, on unusually heavy trading volume
Finally, on November 22, 2023, Fisker Inc. filed its Form 10-Q quarterly report for the period ended September 30, 2023, which disclosed that the Company had "identified approximately $20 million of expenses" which were "incorrectly recorded primarily as selling, general and administrative expenses in our preliminary earnings results, but were later determined to be associated with production set-up activities" and that "other inventory adjustments were recorded resulting in a $4.0 million increase in net loss subsequent to the preliminary earnings results."

Shares of Fisker Inc. (NYSE: FSR) declined from $8.66 per share on January 27, 2023, to $1.52 per share on December 01, 2023.

The plaintiff claims that between August 4, 2023 and November 20, 2023, the defendants failed to disclose to investors that Fisker had a material weakness in its internal control over financial reporting, that Fisker had incorrectly accounted for certain costs, that as a result the Company was likely to delay filing its quarterly report, that Fisker's infrastructure was limiting its ability to deliver its production, and that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

Those who purchased shares of Fisker Inc. (NYSE: FSR) 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.