Investors in Lordstown Motors Corp. (NASDAQ: RIDE, “Lordstown” or the “Company”) may have legal claims arising from conduct by the Company that has given rise to a class action lawsuit (discussed below).
The electric vehicle startup recently said in a regulatory filing with the Securities and Exchange Commission (“SEC”) that orders for its Endurance pickup are non-binding, sending its share price tumbling. Lordstown’s stock dropped as much as 7% after the Company clarified statements by company President Rich Schmidt on June 15, 2021 to the effect that the Company had a large book of binding orders. The Company stated: “Although these vehicle purchase agreements provide us with a significant indicator of demand for the Endurance, these agreements do not represent binding purchase orders or other firm purchase commitments.”
Previously, Company founder and former CEO Steve Burns left Lordstown after the board reportedly determined that he had overstated orders for the Endurance truck with claims of 100,000 pre-orders. This controversy is the subject of a class action lawsuit that has been filed in the United States District Court for the Northern District of Ohio on behalf of investors who purchased or otherwise acquired securities between August 3, 2020 and March 24, 2021, inclusive.