Lilium N.V. (LILM) f/k/a Qell Acquisition Corp. (QELL) Misled the Investing Public Regarding its Ability to Timely Launch the Lilium Jet
A shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Lilium N.V. (NASDAQ: LILM, LILMW, QELL, QELLW) securities between March 30, 2021 and March 14, 2022, for violations of the Securities Exchange Act of 1934. Lilium purports to be a next-generation transportation company focused on developing an electric vertical take-off-and-landing (“eVTOL”) aircraft, the Lilium Jet, for use in a new type of high-speed air transportation for people and goods.
According to the complaint, Lilium closed its business combination with Qell Acquisition Corp. on September 14, 2021, and began trading on Nasdaq on September 15, 2021. The documents filed in support of the business combination touted the Company’s technology, team, and resources, and explained that the money raised from the business combination would “be used to fund the commercial launch of Lilium’s 7-Seater Jet.”
However, defendants failed to disclose that Lilium had overstated the Lilium Jet’s design and capabilities and its timely certification. Further, Lilium misrepresented its ability to obtain or create the necessary batteries for the Lilium Jet and failed to disclose the merger would not generate enough cash to commercially launch the Lilium Jet.
On March 14, 2022, market analyst Iceberg Research released a report entitled “LILIUM NV – THE LOSING HORSE IN THE EVTOL RACE,” which detailed the current state of Lilium. Specifically, the report contends that Lilium is not on track to meet its certification timeline, the energy density of battery cells required by Lilium are currently not available commercially, and the Company only has 18 more months of cash on hand. On this news, Lilium’s stock price fell 34% per share, to close at $2.44 per share on March 14, 2022.
Next Steps: If you acquired shares of Lilium N.V. (LILM) between March 30, 2021 and March 14, 2022, you have until June 17, 2022, to ask the court to appoint you lead plaintiff for the class. 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.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.