Fisker Inc.

Fisker Inc. (FSR) Failed to Disclose a Material Weakness in Internal Control Over Financial Reporting

A shareholder filed a class action lawsuit on behalf of persons and entities that purchased or otherwise acquired Fisker Inc. (NYSE: FSR) securities between August 4, 2023 and November 20, 2023.  Fisker is an electric vehicle company based in California. The Company went public in October 2020 via reverse merger with special purpose acquisition company Spartan Energy Acquisition Corp. The Company has one model currently launched, the Fisker Ocean, an electric vehicle that was released in the United States in June 2023.

According to the complaint, on November 8, 2023, Fisker 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. On this news, the Company’s share price fell $0.38, or 8.7%, to close at $3.99 per share on November 8, 2023.

Then, on November 13, 2023, Fisker announced its third quarter 2023 financial results, reporting a loss of $91.0 million and $0.27 loss per share. The Company also reported $87.44 million for total operating costs and expenses for the three months ended September 30, 2023, and cut its production forecast for the year. 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 this news, the Company’s share price fell $0.77, or 18.7%, to close $3.34 per share on November 14, 2023.

Finally, on November 20, 2023, the Company disclosed that its 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.

The plaintiff alleges that during the class period, defendants failed to disclose to investors: (1) that Fisker had a material weakness in its internal control over financial reporting; (2) that Fisker had incorrectly accounted for certain costs; (3) that as a result the Company was likely to delay filing its quarterly report; and (4) that Fisker’s infrastructure was limiting its ability to deliver its production.

What Now: Similarly situated shareholders may be eligible to participate in the class action against Fisker Inc. Shareholders who want to act as lead plaintiff for the class should contact Robbins LLP. Plaintiffs must file their lead plaintiff papers by January 26, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.

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