Proterra Inc. (PTRAQ) Misled Investors Regarding its Economic Viability and Financial Stability
A shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Proterra Inc. (OTC: PTRA) securities between August 2, 2022 and March 15, 2023. Proterra designs and manufactures zero-emission electric transit vehicles and electric vehicle solutions for commercial applications.
According to the complaint, on August 2, 2022, Chief Financial Officer Karina Franco Padilla described the Company’s strong financial position by stating “we have . . . the balance sheet to not only ride out potential economic turbulence over the next year,” and said the Company had $523 million of cash and cash equivalents on their balance sheet.
On March 15, 2023, Proterra released quarterly earnings for the fourth quarter 2022, including a net loss of $81 million and a gross loss of $20.3 million. The Company also announced it was in violation of a liquidity clause in their secured convertible notes and may have to qualify an audit report with a “going concern” clause. On this news, Proterra’s stock price fell $1.35 per share representing nearly 53% of its value.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Proterra Inc. Shareholders who want to act as lead plaintiff for the class must file their motion with the court by September 12, 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.
