Boca Raton, Florida — March 22, 2021 — The Securities Law Firm of KlaymanToskes (“KT”) provides a Lordstown Motors Corp. (NASDAQ:RIDE) Alert to shareholders concerning the Class Action Lawsuit (Case 21-CV-00616) filed March 18, 2021 in the United States District Court of the Northern District of Ohio, Youngstown Division, for the class period from August 3, 2020 and March 17, 2021.
Lordstown Motors Corp. is a nascent company with a limited history of operating as manufacturer of Electric Vehicle (EV) trucks. According to the class action lawsuit, “Throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company’s purported pre-orders were non-binding; (ii) many of the would-be customers who made these purported pre-orders lacked the means to make such purchases and/or would not have credible demand for Lordstown’s Endurance; (iii) Lordstown is not and has not been “on track” to commence production of the Endurance in September 2021; (iv) the first test run of the Endurance led to the vehicle bursting into flames within 10 minutes;and (v)as a result, the Company’s public statements were materially false and misleading at all relevant times”. During the class period, Lordstown Motors Corp. stock traded as high as $30.75 on February 11, 2021 and closed at $16.46 at the end of the class period, for a 50.92% decline during this period.
The Financial Industry Regulatory Authority, (FINRA) enforces rules and regulations that govern the brokerage firms conduct and safeguard the investing public. FINRA securities arbitration claims may allow investors to claim losses in Lordstown Motors Corp. stock based on facts related to the investment advice provided by full-service brokerage firms and its financial advisors. As the investment losses increase, the better and more cost-effective that securities arbitration claim becomes for an individual investor which may result in greater loss recovery.
According to KT, many investors who held concentrated positions in Lordstown Motors Corp. and other speculative Electric Vehicle (EV) investments with full-service brokerage firms were not educated about the speculative risks. Any recommendations which resulted in unsuitable investment advice and/or speculative concentration in EV stocks are causes of action that may be available for investor claims against their full-service brokerage firm in an individual securities arbitration claim filed with FINRA.
The sole purpose of this release is to investigate whether recommended speculation and concentration in Lordstown Motors Corp. stock and other EV stocks was suitable for investors. For investors with investment losses in portfolios concentrated in EV stocks that exceed $250,000 in accounts with full-service brokerage firms, and have information relating to the manner in which the firm handled their accounts are encouraged to contact Lawrence L. Klayman, Esq., at (561) 542-5131, and download our Special Investor Report.