Lightning eMotors, Inc. (ZEV) Misstated its Operational and Business Prospects
A shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Lightning eMotors, Inc. (NYSE: ZEV) securities between May 7, 2021 and August 16, 2021, for violations of the Securities Exchange Act of 1934. Lightning eMotors designs, manufactures, and sells electronic fleet medium- and heavy-duty vehicles, including delivery trucks, shuttle buses, passenger vans, chassis-cab models, and city transit buses.
According to the complaint, Lightning eMotors was created from a business combination between GigCapital3, Inc., a special purpose acquisition company, and Lightning Systems, Inc. In connection with the business combination, the Company changed its name from GigCapital3, Inc. to Lightning eMotors, Inc. The Company’s stock began trading on May 7, 2021. During the relevant period, the Company touted its competitive advantages, including an increase in “production capacity, supply chain diversification, automation implementation, and marketing efforts,” which improved its “abilities to execute deliveries at a record pace.” The Company expected full year 2021 revenues to be in the range of $50 million to $60 million.
On August 26, 2021, Lightning eMotors announced its financial results for the second quarter of 2021, including a net loss of $46.1 million, compared to a net loss of $2.8 million during the prior-year period. Basic and diluted net loss per share was $0.79 compared to a loss of $0.10 in the second quarter 2020. The Company also pulled its full year financial guidance for the remainder of 2021, citing an expectation of revenues of just $4 million to $6 million in the next quarter. On this news, the Company’s stock fell $1.63 per share, or almost 17%, to close at $8.00 per share on August 17, 2021.
If you purchased shares of Lightning eMotors, Inc. (ZEV) between May 7, 2021 and August 16, 2021, you have until December 14, 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.