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Lightning eMotors, Inc. Class Action Lawsuit - ZEV

Company Name
Lightning eMotors, Inc.
Stock Symbol
ZEV; ZEV.WS
Class Period
May 7, 2021 to August 16, 2021
Motion Deadline
December 14, 2021
Court
District of Colorado
15 days left to seek lead plaintiff status

Case Summary

The Lightning eMotors class action lawsuit charges Lightning eMotors, Inc. f/k/a GigCapital3, Inc. (NASDAQ: ZEV; ZEV.WS) and certain of its top executives with violations of the Securities Exchange Act of 1934.  The Lightning eMotors class action lawsuit seeks to represent purchasers of Lightning eMotors securities between May 7, 2021 and August 16, 2021, inclusive (the “Class Period”).  The Lightning eMotors class action lawsuit was commenced on October 15, 2021 in the District of Colorado and is captioned Shafer v. Lightning eMotors, Inc., No. 21-cv-02774.

If you wish to serve as lead plaintiff of the Lightning eMotors class action lawsuit, please provide your information by clicking here.  You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.com.  Lead plaintiff motions for the Lightning eMotors class action lawsuit must be filed with the court no later than December 14, 2021.

CASE ALLEGATIONS: Prior to its business combination with Lightning eMotors, GigCapital3 was a special purpose acquisition company (“SPAC”), also known as a blank check company, incorporated for the purpose of entering into a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization, or similar business combination with one or more businesses or entities.  On May 6, 2021, Lightning eMotors consummated a business combination with Lightning Systems, Inc. pursuant to an agreement by and among GigCapital3, Project Power Merger Sub, Inc., and Lightning Systems.  On May 7, 2021, Lightning eMotors’s common stock and warrants began trading on the New York Stock Exchange under the symbols “ZEV” and “ZEV.WS”, respectively.

The Lightning eMotors class action lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose that: (i) Lightning eMotors would record a substantially greater net loss per share in the second quarter of 2021 compared to the second quarter of 2020 and would pull its full year guidance for the remainder of 2021; (ii) accordingly, Lightning eMotors materially overstated its financial position and/or prospects; and (iii) as a result, Lightning eMotors’s public statements were materially false and misleading at all relevant times.

On August 16, 2021, Lightning eMotors announced its financial results for the second quarter of 2021, including a net loss per share of $0.79 compared to a loss of $0.10 in the second quarter of 2020.  Lightning eMotors also pulled its full year financial guidance for the remainder of 2021, just days after announcing a multi-year agreement with Forest River, a Berkshire Hathaway company.  On this news, Lightning eMotors’s stock price fell nearly 17%, damaging investors.

Robbins Geller Rudman & Dowd LLP has launched a dedicated SPAC Task Force to protect investors in blank check companies and seek redress for corporate malfeasance.  Comprised of experienced litigators, investigators, and forensic accountants, the SPAC Task Force is dedicated to rooting out and prosecuting fraud on behalf of injured SPAC investors.  The rise in blank check financing poses unique risks to investors.  Robbins Geller’s SPAC Task Force represents the vanguard of ensuring integrity, honesty, and justice in this rapidly developing investment arena.

THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Lightning eMotors securities during the Class Period to seek appointment as lead plaintiff in the Lightning eMotors 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 Lightning eMotors class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the Lightning eMotors class action lawsuit.  An investor’s ability to share in any potential future recovery of the Lightning eMotors class action lawsuit is not dependent upon serving as lead plaintiff.

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions.  Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.  The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors last year, more than double the amount recovered by any other securities plaintiffs’ firm.

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