Arcimoto Inc. Class Action Lawsuit
- Company Name
- Arcimoto Inc.
- Stock Symbol
- Class Period
- February 14, 2018 to March 22, 2021
- Motion Deadline
- June 18, 2021
- Eastern District of New York
The Arcimoto Inc. class action lawsuit charges Arcimoto and certain of its executives with violations of the Securities Exchange Act of 1934 and seeks to represent all persons and entities who purchased the publicly traded securities of Arcimoto between February 14, 2018 and March 22, 2021, inclusive (the “Class Period”). The Arcimoto class action lawsuit was commenced on April 19, 2021 in the Eastern District of New York and is captioned Barnette v. Arcimoto Inc., No. 21-cv-02143.
Arcimoto is purportedly engaged in the business of manufacturing ultra-efficient three-wheeled electric vehicles. Arcimoto’s products include the Fun Utility Vehicle (“FUV”).
The Arcimoto class action lawsuit alleges that Arcimoto stated in press releases throughout the Class Period that Arcimoto had received numerous preorders for their FUV. Arcimoto stated that it received over 400 FUV preorders in total. Arcimoto further generated excitement for their vehicles by announcing pilot programs with various entities. However, the Arcimoto class action lawsuit alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) the preorders of Arcimoto’s FUVs were fabricated or never completed, with only 19 units delivered out of an alleged preorder of 422; (ii) Arcimoto failed to disclose to customers that nearly 100% of its vehicles delivered were under safety recall; (iii) Arcimoto’s largest customer, R-Key-Moto, LLC, was an undisclosed related party owned by insider FOD Capital, LLC; (iv) Arcimoto’s partnership with HULA Holdings was an undisclosed related party transaction; and (v) as a result, defendants’ public statements were materially false and/or misleading at all relevant times.
On March 23, 2021, Bonitas Research published a report revealing that Arcimoto had misled the investing public by fabricating its preorders. The Bonitas Research report also stated that Arcimoto “concealed safety concerns from customers and investors” and that Arcimoto’s largest customer, R-Key-Moto, LLC, was an undisclosed related party. The Bonitas Research report additionally revealed issues regarding Arcimoto’s alleged partnership with HULA, stating “[a]t the time Hula’s owner was [an Arcimoto] shareholder, making it another transaction with an undisclosed shareholder.” On this news, Arcimoto’s stock price fell more than 6%, damaging investors.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Arcimoto securities during the Class Period to seek appointment as lead plaintiff in the Arcimoto class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Arcimoto class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Arcimoto class action lawsuit. An investor’s ability to share in any potential future recovery of the Arcimoto action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Arcimoto class action lawsuit or have questions concerning your rights regarding the Arcimoto class action lawsuit, please provide your information here or contact counsel, Michael Albert of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at firstname.lastname@example.org. Lead plaintiff motions for the Arcimoto class action lawsuit must be filed with the court no later than June 18, 2021.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For eight consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.