Workhorse investors may receive additional information about the case by clicking the link "Submit Your Information" above.
Workhorse is a technology company engaged in the development and manufacturing of electric delivery vehicles. In 2016, the United States Postal Service (“USPS”) announced the USPS Next Generation Delivery Vehicle (“NGDV”) project, a competitive multiyear acquisition process for replacing approximately 165,000 package delivery vehicles. Workhorse was one of the companies vying for the NGDV contract, which was thought to be worth approximately $6.3 billion.
The Class Period commences on July 7, 2020, when Workhorse Chief Financial Officer, Steve Schrader, granted an interview to a staff writer at Benzinga, a financial news publication. The interview appeared in print on the Benzinga website. When asked how Workhorse separates itself from the competition generally, Mr. Schrader responded by explaining why Workhorse trucks were advantageous for “postal services.” The complaint alleges that throughout the Class Period, the defendants continued to indicate that Workhorse would secure the NGDV contract.
However, on February 23, 2021, while the market was open, the USPS issued a press release entitled: U.S. Postal Service Awards Contract to Launch Multi-Billion-Dollar Modernization of Postal Delivery Vehicle Fleet. The press release announced that Oshkosh Defense – not Workhorse – had won the lucrative NGDV contract. Following this news, Workhorse’s stock price fell $14.88 per share, or 47%, to close at $16.47 per share in the regular session on February 23, 2021. The stock price continued to drop in after-hours trading and opened on February 24, 2021 at a price of $14.07, a fall of over 50% from the previous open.
The New York Times published an article on February 24, 2021, entitled: Losing Bid for Postal Contract Proves Costly for Electric-Vehicle Maker. The subtitle read: Workhorse, a small truck maker with big ambitions, was counting on the deal for a surge in revenue. Its shares lost $2 billion in value.
The complaint alleges that, throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (1) Workhorse was merely hoping that USPS was going to select an electric vehicle as its NGDV, and had no assurance or indication from USPS that this was the case; (2) Workhorse had concealed the fact that – as revealed by the postmaster general in explaining the ultimate decision not to select an electric vehicle – electrifying the USPS’s entire fleet would be impractical and astronomically expensive; and (3) as a result, the defendants’ public statements were materially false and/or misleading at all relevant times.
If you are a member of the class described above, you may no later than May 7, 2021 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
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: James Maro, Esq. (484) 270-1453 or Adrienne Bell, Esq. (484) 270-1435; toll-free at (844) 887-9500; or via e-mail at firstname.lastname@example.org. 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.