Lordstown Motors (RIDEQ) Failed to Disclose that the Financial Status of the Company was Imperiled by its Strained Relationship with Foxconn
A shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Lordstown Motors Corp. (OTC: RIDEQ) securities between August 4, 2022 and June 26, 2023, based on the wrongful misconduct of the Company’s Chief Executive Officer and Chief Financial Officer. Lordstown is an automotive company founded to develop and manufacture light duty electric trucks.
According to the complaint, during the class period, Lordstown represented publicly that it had been working collaboratively with Hon Hai Technology Group (“Foxconn”) in the context of the companies’ joint venture. However, on June 27, 2023, Lordstown revealed in a court filing that, contrary its prior representations, the Company’s vital partnership with Foxconn had long been in jeopardy and Foxconn’s conduct toward Lordstown had been anything but collaborative. Lordstown sued Foxconn and several of its subsidiaries in the U.S. Bankruptcy Court for the District of Delaware alleging Foxconn’s fraud, bad faith, and failure to live up to its commercial and financial commitments to the Company. On this news, the Company’s stock price fell $0.54 per share, over 21%, to close at $2.29 per share on June 27, 2023.
Similarly situated shareholders may be eligible to participate in the class action against Lordstown Motor Corp.’s executives. Shareholders who want to act as lead plaintiff for the class must file their motion with the court by September 25, 2023. 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.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.