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Canoo Inc. Class Action Lawsuit

Company Name
Canoo Inc.
Stock Symbol
GOEV; GOEVW
Class Period
August 18, 2020 to March 29, 2021
Motion Deadline
June 1, 2021
Court
Central District of California
50 days left to seek lead plaintiff status

Case Summary

The Canoo Inc. class action lawsuit charges Canoo and certain of its executives with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers or acquirers of Canoo securities between August 18, 2020 and March 29, 2021, inclusive (the “Class Period”).  The Canoo class action lawsuit was commenced on April 2, 2021 in the Central District of California and is captioned Blake v. Canoo Inc., No. 21-cv-02873.

Canoo Holdings Ltd. (“Canoo Holdings”) was an electric vehicle company that touted a “unique business model that defies traditional ownership to put customers first.”  Canoo Holdings has announced a delivery vehicle (to launch in 2022), pickup truck (to launch in 2023), and van, all of which are built on the same underlying technological platform.  Hennessy Capital Acquisition Corp. IV (“Hennessy Capital”) was a blank check company, also known as a special purpose acquisition company (“SPAC”), formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination.  On or about December 21, 2020, Canoo Holdings became a public entity via merger with Hennessy Capital, with the surviving entity named “Canoo.”

The Canoo class action lawsuit alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) Canoo had decreased its focus on its plan to sell vehicles to consumers through a subscription model; (ii) Canoo would deemphasize its engineering services business; (iii) contrary to prior statements, Canoo did not have partnerships with original equipment manufacturers and no longer engaged in the previously-announced partnership with Hyundai; and (iv) as a result of the foregoing, defendants’ positive statements about Canoo’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

On March 29, 2021, Canoo revealed that Canoo would no longer focus on its engineering services line, which had been touted in the SPAC merger documents just three months earlier and formed the basis of Canoo’s growth story.  On this news, Canoo’s stock price fell more than 21.19%, damaging investors.

The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Canoo securities during the Class Period to seek appointment as lead plaintiff in the Canoo 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 Canoo class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the Canoo class action lawsuit.  An investor’s ability to share in any potential future recovery of the Canoo action lawsuit is not dependent upon serving as lead plaintiff.  If you wish to serve as lead plaintiff of the Canoo class action lawsuit or have questions concerning your rights regarding the Canoo class action lawsuit, please provide your information here or contact counsel, Jennifer Caringal of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at jcaringal@rgrdlaw.com.  Lead plaintiff motions for the Canoo class action lawsuit must be filed with the court no later than June 1, 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.

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