Lordstown Motors Corp. Class Action Lawsuit - RIDE

Case Summary

Investors who suffered a loss and would like to learn more, click here to contact us.

The Lordstown class action lawsuit seeks to represent purchasers or acquirers of Lordstown Motors Corp. (NASDAQ: RIDE) securities between August 4, 2022 and June 26, 2023, inclusive (the “Class Period”).  Captioned Lim v. Hightower, No. 23-cv-01454 (N.D. Ohio), the Lordstown class action lawsuit charges certain of Lordstown’s top executive officers with violations of the Securities Exchange Act of 1934.

If you suffered substantial losses and wish to serve as lead plaintiff of the Lordstown class action lawsuit, please provide your information in the form on this page.  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 Lordstown class action lawsuit must be filed with the court no later than September 25, 2023.

CASE ALLEGATIONS: Lordstown is an automotive company founded for the purpose of developing, engineering, manufacturing, and selling light duty electric vehicles targeted for sale to fleet customers.  On May 11, 2022, Lordstown announced the sale of its Lordstown manufacturing facility to Hon Hai Technology Group (“Foxconn”) and further executed a joint venture agreement (the “JV Agreement”) with Foxconn to co-design and develop vehicle programs for the global commercial fleet market.  Soon after the execution of the JV Agreement, Lordstown’s relationship with Foxconn soured and Lordstown agreed to execute a second agreement to replace the JV Agreement (the “Investment Agreement”) in an attempt to salvage Lordstown’s relationship with Foxconn.

The Lordstown class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) Foxconn refused to provide access to engineering drawings or vehicle design data or establish a license deal; (ii) Lordstown and Foxconn’s relationship was not collaborative; (iii) Lordstown and Foxconn were engaged in a dispute regarding the validity of an amendment to the Investment Agreement, jeopardizing a vital influx of capital Lordstown needed to survive.

On May 1, 2023, Lordstown revealed that it received a letter from Foxconn on April 21, 2023: (i) asserting Lordstown was in breach of the investment Agreement due to its previously disclosed receipt of a notice from NASDAQ indicating that Lordstown was no longer in compliance with the $1.00 minimum bid price requirement for continued listing on the NASDAQ; and (ii) purporting to terminate the Investment Agreement if Lordstown’s breach was not cured within 30 days.  On this news, the price of Lordstown shares declined more than 23%.

Then, on May 23, 2023, Lordstown announced that it approved a proposal to effect a 1:15 reverse split of Lordstown’s outstanding shares of Class A common stock.  On this news, the price of Lordstown shares declined more than 12%.

Finally, on June 27, 2023, Lordstown commenced litigation against Foxconn in U.S. Bankruptcy Court alleging that Foxconn had engaged in fraud, bad faith, and failure to live up to its commercial and financial commitments to Lordstown throughout their partnership.  Lordstown further revealed that it was pursuing a restructuring through a voluntary petition filed under Chapter 11 of the U.S. Bankruptcy Code.  On this news, the price of Lordstown shares declined more than 17%, further damaging investors. 

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

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases.  The Firm is ranked #1 on the most recent ISS Securities Class Action Services Top 50 Report for recovering more than $1.75 billion for investors in 2022 – the third year in a row Robbins Geller tops the list.  And in those three years alone, Robbins Geller recovered nearly $5.3 billion for investors, more than double the amount recovered by any other plaintiffs’ firm.  With 200 lawyers in 10 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.

Submit Your Information

Valid monetary value, for example, $1000.00

* indicates a required field

Main Menu