Officers and Directors of Lightning eMotors (ZEV) under Investigation for Alleged False and Misleading Statements Concerning the Company’s Business Operations

Schubert Jonckheer & Kolbe LLP is investigating potential derivative claims on behalf of shareholders of Lightning eMotors (NASDAQ: ZEV) for alleged false and misleading statements concerning the company’s core business operations and future projections.

Lightning eMotors (f/k/a Lightning Systems) manufactures and sells electric vehicles designed for commercial transportation, including delivery trucks, shuttle buses, and city transit buses.

In April 2021, Gig3, a special purpose acquisition company, announced a merger agreement with Lightning Systems. The accompanying proxy statement touted Lightning Systems as a fast-growing and scalable operation. According to the proxy, the company’s impressive financial projections were “backed by existing customer contracts” and “completely covered[ed]” by existing purchase orders. The proxy also highlighted the “high degree of resilience” in Lightning Systems supply chain logistics. The merger was effectuated in May 2021 and Lightning Systems officially became Lightning eMotors.

The hype surrounding Lighting eMotors quickly faded. Just a few days after the merger was finalized, Lightning eMotors revised its financial projections downward due to supply chain issues but maintained that it was still “well-positioned to achieve its 2021 forecast” and well-equipped to handle the supply chain unpredictability. However, in August 2021, the company announced dismal results that fell far below its targets and once again attributed these results to supply chain issues and COVID-related delays. Upon this news, the stock price fell by 16%.

These allegations have invited shareholder lawsuits against Lightning eMotors and Gig3. The lawsuits allege that Lightning eMotors had a history of supply chain and quality assurance issues, but the company repeatedly touted its scalability and strong supply chain infrastructure despite long-standing operational deficiencies.

 The Schubert Firm is investigating potential breaches of fiduciary duty by Lightning eMotors officers and directors in connection with these allegations. If you own stock in Lightning eMotors and wish to obtain additional information about your legal rights, please complete the form below for a free legal consultation.