NEW YORK, April 07, 2021 (GLOBE NEWSWIRE) -- Lowey Dannenberg P.C., a preeminent law firm in obtaining redress for consumers and investors, is investigating claims of violations of federal securities laws on behalf of investors of Lordstown Motors Corp. (“RIDE” or the “Company”) (NASDAQ: RIDE).
On March 12, 2021, Hindenburg Research published an article, "The Lordstown Motors Mirage: Fake Orders, Undisclosed Production Hurdles, And A Prototype Inferno". The report claimed 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 article continued to state 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 [National Highway Traffic Safety Administration]." Following this news, Lordstown Motor stock dropped during intraday trading on March 12, 2021.
Then on March 17, 2021, Lordstown announced that it is the subject of an SEC inquiry for information following the release of the Hindenburg Research report. Also, before markets opened on March 18, 2021, Stephen Burns, Lordstown's CEO, was 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." Following this news Lordstown stock dropped roughly 9%.
A class action lawsuit has already been filed. If you are a shareholder of RIDE who purchased or otherwise acquired Lordstown securities between August 3, 2020 and March 17, 2021, and wish to participate, learn more, or discuss the issues surrounding the investigation, please contact our attorneys at (914) 733-7256 or via email at investigations@lowey.com. If you suffered a loss in Lordstown you have until May 17, 2021 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Whistleblowers: Persons with non-public information regarding RIDE should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC.
About Lowey Dannenberg
Lowey Dannenberg is a national firm representing institutional and individual investors, who suffered financial losses resulting from corporate fraud and malfeasance in violation of federal securities and antitrust laws. The firm has significant experience in prosecuting multi-million-dollar lawsuits and has previously recovered billions of dollars on behalf of investors.
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Lowey Dannenberg P.C.
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Tel: (914) 733-7256
Email: investigations@lowey.com