Connect with us


New trial claims Lordstown Motors officials took advantage of misleading claims




Lawsuit alleges their statements led to artificially inflated stock prices

More than a year after General Motors announced it would cease production at its Lordstown plant, a new sign is taking place where the GM Lordstown complex once stood.

LORDSTOWN, Ohio (WKBN) – Another civil class action lawsuit has been filed against Lordstown Motors alleging company officials took advantage of misleading claims.

The lawsuit filed in North American District Court in Ohio on Friday by Sulayman Zuod lists the defendants as Lordstown Motors Corp., CEO Stephen S. Burns, CFO Julio Rodriguez, Chairman Rich Schmidt and COO of stamping Michael Fabian.

The lawsuit cites a recent report from Hindenburg Research, who alleged that the company had misled investors, focusing on demand and the company’s production capacities. He says his review shows that the company’s orders are largely fictitious and used as an accessory to raise capital and confer legitimacy.

The report responded to claims by Lordstown Motors that it had 100,000 pre-orders for the Endurance electric pickup truck. Hidenburg Research said many of these orders came from fake operations or from people who were unable or unwilling to actually make purchases.

Hidenburg Research is a short seller and financial experts say they have a financial interest in publishing such a report.

The lawsuit argues that due to these allegations by company officials, Lordstown Motors’ shares were inflated and officials cashed in, selling nearly $ 27 million of their personal stock.

The lawsuit also cites an interview with CEO Steve Burns on CNBC on March 18, in which Burns said he never said the company had orders because there was no product yet. He said the pre-orders were aimed at gauging interest in the product, the lawsuit claims, citing CNBC.

Stock prices fell after these reports.

According to the lawsuit, Zuod bought the shares of Lordstown Motors and was negatively affected by the developments.

The class action period begins on August 3, when Lordstown Motors announced that it would get a public listing following a merger with acquisition company DiamondPeak Holdings Corporation.

The lawsuit seeks damages, as well as costs and attorneys’ fees for the plaintiff and the class members.

The CEO of the company previously brushed aside allegations from Hindenburg Research, saying Lordstown Motors is doing legitimate business and there will always be “haters”.

Lordstown Motors officials announced on Wednesday that the first two beta versions of the Endurance pickup trucks have rolled off the production line. They said they pledged to start mass production of all-electric vehicles in September.

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos

picture credit


to request, modification Contact us at Here or [email protected]