XL Fleet Corp. Class Action Lawsuit
- Company Name
- XL Fleet Corp.
- Stock Symbol
- Class Period
- October 2, 2020 to March 2, 2021
- Motion Deadline
- May 7, 2021
- Southern District of New York
The XL Fleet Corp. class action lawsuit charges XL Fleet and certain of its executives with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers or acquirers of XL Fleet securities between October 2, 2020 and March 2, 2021, inclusive (the “Class Period”). The XL Fleet class action lawsuit was commenced on March 8, 2021 in the Southern District of New York and is captioned Suh v. XL Fleet Corp., No. 21-cv-02002.
XL Fleet provides vehicle electrification solutions for commercial and municipal fleets in North America, offering hybrid and plug-in hybrid electric drive systems. XL Fleet formed via the merger of XL Hybrids, Inc. and Pivotal Investment Corporation II (“Pivotal”), which closed on or about December 22, 2020. Pivotal was a special purpose acquisition company (“SPAC”).
The XL Fleet class action lawsuit alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) XL Fleet’s salespeople were pressured to inflate their sales pipelines to boost XL Fleet’s reported sales and backlog; (ii) at least 18 of the 33 customers that XL Fleet featured were inactive and had not placed an order since 2019; (iii) XL Fleet’s technology had been materially overstated and offered only 5% to 10% of fleet savings; (iv) XL Fleet lacked the supply chain and engineers to roll out new products on the announced timelines; and (v) as a result of the foregoing, defendants’ positive statements about XL Fleet’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On March 3, 2021, Muddy Waters Research published a report entitled “XL Fleet Corp. (NYSE: XL): More SPAC Trash,” alleging, among other things, that salespeople “were pressured to inflate their sales pipelines materially in order to mislead XL [Fleet]’s board and investors” and that “customer reorder rates are in reality quite low” due to “poor performance and regulatory issues.” Citing interviews with former employees, the report alleged that “at least 18 of 33 customers XL [Fleet] featured were inactive.” Muddy Waters also claimed that XL Fleet has “weak technology” and that “XL’s announcement of future Class 7-8 upfits seems highly promotional” because the task is “too technologically complex for XL [Fleet] engineers to deliver on the promised timeline.” On this news, XL Fleet’s share price fell approximately 13%, damaging investors.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased XL Fleet securities during the Class Period to seek appointment as lead plaintiff in the XL Fleet 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 XL Fleet class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the XL Fleet class action lawsuit. An investor’s ability to share in any potential future recovery of the XL Fleet action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the XL Fleet class action lawsuit or have questions concerning your rights regarding the XL Fleet class action lawsuit, please provide your information here or contact counsel, J.C. Sanchez of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at email@example.com. Lead plaintiff motions for the XL Fleet class action lawsuit must be filed with the court no later than May 7, 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.