Lordstown Motors Directors and Officers Under Investigation for False Statements and Insider Trading
Schubert Jonckheer & Kolbe LLP is investigating potential derivative claims on behalf of shareholders of Lordstown Motors Corp. (NASDAQ: RIDE) relating to possible false statements to investors and significant insider trading by key officers and a director.
On March 12, 2021, Hindenburg Research published a scathing research report describing Lordstown Motors as an “electric vehicle SPAC with no revenue and no sellable product, which we believe has misled investors on both its demand and production capabilities.” Hindenburg reportedly spoke to former employees who claimed the company was not on track to meet its publicly-stated production timelines. Hindenburg also described numerous instances of alleged “pre-orders” for the company’s electric pick-up truck, the Endurance, as being “largely fictitious and used as a prop to raise capital and confer legitimacy.” Furthermore, between October 22, 2020 and February 4, 2021, certain Lordstown officers and a director sold more than $28 million of stock while outside investors remained in the dark about the true state of the company.
This conduct has now attracted the attention of regulators, including the SEC, and the company’s Board of Directors has assigned a special committee to conduct an internal investigation. There are also at least two class action lawsuits on file in the United States District Court for the Northern District of Ohio, where the company is based. The company’s stock price has steadily plummeted in recent weeks, wiping out hundreds of millions of dollars of market capitalization.
The Schubert Firm is investigating potential breaches of fiduciary duty by the company’s officers and directors in connection with these allegations.
If you currently own stock in Lordstown Motors and wish to obtain additional information—or would like to participate in a potential shareholder derivative action—please complete the form below for a free legal consultation.
