| COMPANY |
Lordstown Motors Corp. f/k/a DiamondPeak Holdings Corp. |
| COURT |
United States District Court for the Northern District of Ohio |
| CASE NUMBER |
21-cv-00616 |
| JUDGE |
The Honorable David A. Ruiz |
| CLASS PERIOD |
August 3, 2020 - March 24, 2021 |
| SECURITY TYPE |
Common Stock |
Case Background:
The Class Period commences on August 3, 2020, when Lordstown 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 Lordstown “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, Lordstown repeatedly lauded its pre-order agreements with prospective customers. Moreover, Lordstown 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, the Defendants made false and/or misleading statements and/or failed to disclose that: (1) Lordstown’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) 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, Lordstown’s public statements were materially false and misleading at all relevant times.
Current Status of Case:
On August 28, 2023, the Court stayed this action in light of Lordstown’s filing for bankruptcy.
On March 6, 2024, the U.S. Bankruptcy Court for the District of Delaware entered an Order preliminarily approving the proposed settlement. On March 22, 2024, the U.S. Bankruptcy Court for the District of Delaware issued an Order of Notice of Certification of Settlement Class and Proposed Settlement. A Final Settlement Hearing is scheduled for June 11, 2024. This action is ongoing.
The deadline to file a claim is July 20, 2024. If you have any questions or need further information about this settlement, you may go to the following website, www.strategicclaims.net/lordstown/ or you can contact the claims administrator, Strategic Claims Services at 1-866-274-4004.
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.