LOS ANGELES, April 19, 2021 /PRNewswire/ -- The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Lordstown Motors Corp. ("Lordstown" or the "Company") (NASDAQ: RIDE) securities between August 3, 2020 and March 17, 2021, inclusive (the "Class Period"). Lordstown investors have until May 17, 2021 to file a lead plaintiff motion.

If you are a shareholder who suffered a loss, click here to participate.

On March 12, 2021, Hindenburg Research published a report alleging that Lordstown has "no revenue and no sellable product." Though the Company has "consistently pointed to its book of 100,000 pre-orders as proof of deep demand of its proposed EV truck," the report alleged that these "orders are largely fictitious" and merely formed a "marketing relationship" with no obligation to purchase products.

On this news, the Company's share price fell $2.93, or 16.5%, to close at $14.78 on March 12, 2021, thereby injuring investors.

Then on March 17, 2021, after trading had closed, the Company held an earnings call disclosing that Lordstown had received an inquiry from the Securities & Exchange Commission ("SEC"). 

On this news, the stock fell approximately another 9% in aftermarket trading.

The complaint filed alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Company's purported pre-orders were non-binding; (2) 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; (3) Lordstown is not and has not been "on track" to commence production of the Endurance in September 2021; (4) the first test run of the Endurance led to the vehicle bursting into flames within 10 minutes; and (5) as a result, Defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.

Follow us for updates on Twitter: twitter.com/FRC_LAW.

If you purchased Lordstown securities during the Class Period, you may move the Court no later than May 17, 2021 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Lordstown securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to [email protected], or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

View original content to download multimedia:http://www.prnewswire.com/news-releases/the-law-offices-of-frank-r-cruz-announces-the-filing-of-a-securities-class-action-on-behalf-of-lordstown-motors-corp-ride-investors-301271279.html

SOURCE The Law Offices of Frank R. Cruz, Los Angeles