Hyzon Motors Inc. (HYZN) Misrepresented its Customer List and Production Capabilities
A shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Hyzon Motors Inc. (NASDAQ: HYZN, HYZNW) securities between February 9, 2021 and September 27, 2021, for violations of the Securities Exchange Act of 1934. Hyzon Motors Inc. purports to be the industry-leading global supplier of zero emissions hydrogen fuel cell powered commercial vehicles.
According to the complaint, on February 9, 2021, Hyzon announced a business combination with Decarbonization Plus Acquisition Corporation (NASDAQ: DCRB). The announcement touted Hyzon’s supply agreements, global reach, and expansion abilities. Throughout the class period, defendants hyped the Company’s vehicle orders. Specifically, on August 11, 2021, “Hyzon affirmed 2021 sales outlook, including 85 vehicles to be shipped worldwide[.]” Then, on September 9, 2021, the Company announced it would “supply up to 500 hydrogen fuel cell electric vehicles to Shanghai logistics company,” with 100 vehicles delivered before the end of 2021 and the other 400 delivered in 2022.
In reality, Hyzon was misrepresenting the nature of its customer contracts and embellishing its deals and partnerships with customers. The truth was revealed on September 28, 2021, when market analyst Blue Orca Capital published a report disclosing that, among other things: (1) Hyzon’s largest customer is a fake-looking Chinese shell entity formed three days before the deal was announced; (2) Hyzon’s purported largest customer was a “channel partner” assisting Hyzon in marketing vehicles to retail end customers in New Zealand; and (3) Hyzon misrepresented its big-name blue chip customers and failed to adjust its revenue projections. On this news, Hyzon shares fell $2.58 per share, or 28%, to close at $6.63 per share on September 28, 2021, damaging investors.
If you purchased shares of Hyzon Motors Inc (HYZN) between February 9, 2021 and September 27, 2021, you have until November 29, 2021, to ask the court to appoint you lead plaintiff for the class.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.