Recent Securities Litigations
Lordstown Motors Corp (NASDAQ: RIDE)
On August 3, 2020, Lordstown and DiamondPeak Holdings Corp. announced that they had entered into a definitive merger agreement through which, upon closing, the combined company would remain listed on the NASDAQ stock exchange under the new ticker symbol “RIDE.” DiamondPeak was setup as a special purpose acquisition company (also known as a SPAC). DiamondPeak’s shares traded on the NASDAQ stock exchange under the ticker symbol “DPHC.”
The Complaint alleges that during the Class Period, Defendants misled investors by misrepresenting and omitting to disclose that: (i) the Company’s purported pre-orders were non-binding; (ii) many of the would- be customers who made these purported pre-orders lacked the means to make such purchases and/or would not have credible demand for Lordstown’s Endurance; (iii) Lordstown is not and has not been “on track” to commence production of the Endurance in September 2021; (iv) the first test run of the Endurance led to the vehicle bursting into flames within 10 minutes; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times.