Boca Raton, Florida — March 16, 2021 — The Securities Law Firm of KlaymanToskes (“KT”) provides notice to all Workhorse Group, Inc. (NYSE:WKHS) shareholders concerning the Class Action Lawsuit (Case 2:21-cv-02072) filed March 8, 2021 in the United States District Court of the Central District of California, for the class period from July 7, 2020 and February 23, 2021.
Workhorse Group is an Electric Vehicle (EV) stock which represents a highly speculative investment. According to the class action lawsuit, “Defendants made materially false and/or misleading statements, and failed to disclose that: (1) the Company was merely hoping that USPS was going to select an electric vehicle as its Next Generation Delivery Vehicle, and had no assurance or indication from USPS that this was the case; (2) the Company had concealed the fact that – as revealed by the postmaster general in explaining the ultimate decision not to select an electric vehicle – electrifying the USPS’s entire fleet would be impractical and astronomically expensive; and (3) as a result, defendants’ statements about Workhorse’s business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times”. During the class period, Workhorse Group stock traded as high as $41.34 on February 4, 2021 and closed at $16.46 at the end of the class period, the day USPS announced contract was awarded to a competitor.
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 Workhorse Group 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 Workhorse Group 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 Workhorse Group 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.