Case Background:
This is a federal securities fraud class action lawsuit on behalf of those who purchased or otherwise acquired Lordstown Motors Corp. (“LTM”) f/k/a DiamondPeak Holdings Corp. (1) Class A common stock, LTM’s publicly traded warrants, LTM’s publicly traded units, or any publicly traded option to purchase or sell LTM’s Class A common stock, from August 3, 2020 through July 2, 2021, inclusive (the “Class Period”); and/or (b) held LTM’s Class A common stock as of September 21, 2020.
The Class Period commences on August 3, 2020, when LTM and DiamondPeak announced that they had entered into a definitive merger agreement. The August 3, 2020 release provided, in relevant part, that the transaction valued LTM “at an implied $1.6 billion pro forma equity value,” and that the transaction was expected to deliver approximately $675 million in gross proceeds. The release also announced that the transaction was expected to close in the fourth quarter of 2020. Throughout the Class Period, LTM repeatedly lauded its pre-order agreements with prospective customers. Moreover, LTM stated numerous times that it was “on track” to begin production of the Endurance in September 2021.
The complaint alleges that, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) LTM’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 the Endurance; (3) LTM 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, LTM’s public statements were materially false and misleading at all relevant times.
Current Status of Case:
On June 6, 2025, Defendants filed the Motion to Dismiss the Second Amended Complaint. This action is ongoing.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.