SAN FRANCISCO, CA / ACCESSWIRE / April 28, 2021 /Hagens Berman updates investors in the following publicly-traded companies and urges investors who have suffered significant losses to contact the firm. Further details about the cases, including important upcoming deadlines, can be found at the links provided.
NASDAQ:GOEV Investors Click Here.
NYSE:SOS Investors Click Here.
NASDAQ:RIDE Investors Click Here.
Canoo Inc. (NASDAQ:GOEV) Securities Fraud Class Action:
Class Period: Aug. 18, 2020 - Mar. 29, 2021
Lead Plaintiff Deadline: June 1, 2021
Visit:www.hbsslaw.com/investor-fraud/GOEV
Contact An Attorney Now:GOEV@hbsslaw.com
844-916-0895
The complaint alleges Canoo misled investors before and after going public through a SPAC closing on Dec. 21, 2020.
Specifically, Defendants repeatedly touted a three-pronged strategy to generate revenue and growth: (i) an engineering services segment; (ii) the sales of subscriptions of vehicles to consumers; and (iii) the sale of vehicles to other businesses. Canoo also emphasized its agreements with established OEMs, including with Hyundai for the co-development of a future EV platform
In truth, defendants concealed that Canoo (1) had decreased its focus on its plan to sell vehicles to consumers through a subscription model; (2) would de-emphasize its engineering services business; and (3) did not have partnerships with OEMs and no longer engaged in the previously announced partnership with Hyundai.
On Mar. 29, 2021, the truth emerged when Canoo abruptly announced its CFO was being replaced, that it would deemphasize its engineering services business, would no longer focus on subscription sales to consumers, and try to make and sell its own vehicles to commercial operators. Moreover, on a call with investors, Canoo's Chairman characterized senior management's statements concerning the company's partnerships as "aggressive" and that "they weren't at our standard of representation to the public markets."
In response to this news, analyst Roth Capital downgraded the company's shares from buy to neutral buy and slashed its price target, and the price of Canoo shares crashed.
"We're focused on investors' losses and proving defendants intentionally misrepresented the viability of Canoo's business model and business partnerships," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a Canoo investor and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
SOS Limited (SOS) Securities Fraud Class Action:
Class Period: July 22, 2020 - Feb. 25, 2021
Lead Plaintiff Deadline: June 1, 2021
Visit:www.hbsslaw.com/investor-fraud/SOS
Contact An Attorney Now:SOS@hbsslaw.com
844-916-0895
The complaint centers on SOS's purported entry into the bitcoin mining business. On Jan. 21, 2021, SOS claimed it purchased over 15,000 mining rigs from HY International Group New York ("HY"), and a month later, claimed that 5,000 mining rigs had gone live.
The complaint alleges that, in truth, SOS has misrepresented the type and/or existence of bitcoin mining rigs SOS claimed to have purchased and concealed related party transactions.
The truth emerged on Feb. 26, 2021, when Hindenburg Research and Culper Research both claimed that SOS was an intricate "pump and dump" scheme that used fake addresses and doctored photos of crypto miners to create an illusion of success. The analysts pointed out that the company's SEC filings, for instance, listed a hotel room as the firm's headquarters. The analysts also questioned whether SOS had actually purchased the claimed mining rigs, as HY appears to be a fake shell company. Most damaging, the analysts alleged that photos SOS had published of their "mining rigs" were phony. Culper noted that the photographed SOS "miners" weren't the A10 Pros the company claimed to own. Instead, they were pictures of Avalon's A1066 miners. Hindenburg further found the original images from SOS's site belonged to a legitimate rival, RHY.
After the class period, on Mar. 9, 2021 SOS admitted that rig seller HY was formed to preserve the "confidentiality" of a Chinese seller of used mining rigs.
Then, on Mar. 12, 2021 Culper claimed that SOS board member Wenbin Wu is directly linked to HY and arguing that SOS's supposed desire for "‘confidentiality' is in fact a thinly-veiled excuse for fraud via an undisclosed related party transaction."
Media outlets including Stock Telegraph have observed SOS's failure to substantively refute any of Hindenburg's and Culper's allegations, making SOS lose investors' confidence.
"We're focused on investors' losses and proving SOS is a false promotion scheme," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a SOS investor, click here to discuss your legal rights with Hagens Berman.
RIDE Securities Fraud Class Action:
Class Period: Aug. 3, 2020 - Mar. 17, 2021
Lead Plaintiff Deadline: May 17, 2021
Visit:www.hbsslaw.com/cases/RIDE
Contact an Attorney Now:RIDE@hbsslaw.com
844-916-0895
The complaint alleges defendants misled investors by (i) falsely touting customer pre-orders when they were non-binding agreements, (ii) concealing that many would-be customers lacked the means to make such purchases, (iii) misstating that Lordstown was "on track" to commence production of the Endurance in Sept. 2021, and (iv) omitting to disclose that the first Endurance test run resulted in the vehicle quickly bursting into flames.
Investors began to learn the truth on Mar. 12, 2021, when Hindenburg Research published a report,claiming that the 100,000 pre-orders for Lordstown's EV truck are "largely fictitious and used as a prop to raise capital and confer legitimacy." Hindenburg also cited significant, undisclosed production delays and a prototype that "burst into flames 10 minutes before the test drive" in Jan. 2021, substantiating claims by former employees that the company is not conducting the needed testing or validation required by the NHTSA. On this news, Lordstown shares fell by 17% in one trading day.
Before the markets opened on Mar. 18, 2021, Lordstown's CEO, Stephen Burns, appeared on CNBC stating, "We never said we had orders. We don't have a product yet so by definition you can't have orders." Lordstown shares fell approximately another 9% on this news.
Then, on Mar. 24, Hindenburg hit again, publishing photos of a broken down Endurance on a tow truck during a commercial shoot last summer. The commercial aired several days before Lordstown Motors announced its merger with SPAC DiamondPeak.
Most recently, on Apr. 23, 2021, Goldman Sachs reportedly downgraded Lordstown shares to neutral and slashed its price target by over 50%. According to the report, Goldman analyst Mark Delaney said the company's Endurance pickup truck's failure to complete the Baja, Mexico race earlier this week suggests there is more power train development work to do than he expected.
"We're focused on investors' losses and proving Lordstown duped investors about its order book," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a Lordstown investor and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Canoo, SOS, and/or Lordstown should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email GOEV@hbsslaw.com, SOS@hbsslaw.com, and/or RIDE@hbsslaw.com.
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Contact:
Reed Kathrein, 844-916-0895
SOURCE: Hagens Berman Sobol Shapiro LLP
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