SAN FRANCISCO, CA / ACCESSWIRE / April 9, 2021 / Hagens Berman updates buyers within the following publicly-traded firms and urges buyers who’ve suffered vital losses to contact the agency. Additional particulars concerning the circumstances, together with essential upcoming deadlines, may be discovered on the hyperlinks supplied.
SOS Buyers Click on Here.
RIDE Buyers Click on Here.
XL Buyers Click on Here.
SOS Restricted (NYSE:SOS) Securities Fraud Class Motion:
Class Interval: July 22, 2020 – Feb. 25, 2021
Lead Plaintiff Deadline: June 1, 2021
Contact An Lawyer Now:SOS@hbsslaw.com
The grievance facilities on SOS’s purported current entry into the bitcoin mining enterprise. For instance, on Jan. 21, 2021, SOS claimed to have bought over 15,000 mining rigs from HY Worldwide Group New York (“HY”) for $20 M, and a month later, claimed that 5,000 mining rigs had already gone stay.
The grievance alleges that, in reality, SOS is a fraudulent inventory promotion scheme that has hid associated social gathering transactions, and has misrepresented the sort and/or existence of bitcoin mining rigs SOS claimed to have bought earlier this 12 months.
Buyers allegedly started to study the reality on Feb. 26, 2021, when Hindenburg Analysis and Culper Analysis launched scathing commentary on SOS, claiming that SOS was an intricate “pump and dump” scheme that used faux addresses and doctored photographs of crypto miners to create an phantasm of success. The analysts identified that the corporate’s SEC filings, for example, listed a resort room because the agency’s headquarters. The analysts additionally questioned whether or not SOS had really bought the claimed mining rigs, as HY seems to be a faux shell firm. Most damaging, the analysts alleged that the photographs SOS had revealed of their “mining rigs” had been phony. Culper famous that the photographed SOS “miners” weren’t the A10 Execs the corporate claimed to personal. As an alternative, they had been photos of Avalon’s A1066 miners. Hindenburg additional discovered the unique photographs from SOS’s website belonged to a professional rival, RHY.
After the category interval, on Mar. 9, 2021 SOS admitted that rig vendor HY was fashioned to protect the “confidentiality” of a Chinese language vendor of used mining rigs.
Then, on Mar. 12, 2021 Culper revealed a follow-up report, claiming that SOS board member Wenbin Wu is immediately linked to HY and arguing that SOS’s supposed want for “‘confidentiality'” is in truth a thinly-veiled excuse for fraud through an undisclosed associated social gathering transaction.”
“We’re centered on buyers’ losses and proving SOS is a false promotion scheme,” stated Reed Kathrein, the Hagens Berman associate main the investigation.
If you’re a SOS investor, click here to discuss your legal rights with Hagens Berman.
Lordstown Motors Corp. (NASDAQ:RIDE) Securities Fraud Class Motion:
Class Interval: Aug. 3, 2020 – Mar. 17, 2021
Lead Plaintiff Deadline: Could 17, 2021
Contact an Lawyer Now:RIDE@hbsslaw.com
The grievance alleges defendants misled buyers by (i) falsely touting buyer pre-orders after they had been non-binding agreements, (ii) concealing that many would-be clients lacked the means to make such purchases, (iii) misstating that Lordstown was “on observe” to begin manufacturing of the Endurance in Sept. 2021, and (iv) omitting to reveal that the primary Endurance check run resulted within the automobile shortly bursting into flames.
Buyers started to study the reality on Mar. 12, 2021, when Hindenburg Analysis revealed a report, claiming that the 100,000 pre-orders for Lordstown’s EV truck are “largely fictitious and used as a prop to boost capital and confer legitimacy.” Hindenburg additionally cited vital, undisclosed manufacturing delays and a prototype that “burst into flames 10 minutes earlier than the check drive” in Jan. 2021, substantiating claims by former staff that the corporate isn’t conducting the wanted testing or validation required by the NHTSA. On this information, Lordstown shares fell by 17% in a single buying and selling day.
After the markets closed on Mar. 17, 2021, Lordstown disclosed that Lordstown is the topic of an SEC inquiry. Lastly, earlier than the markets opened on Mar. 18, 2021, Lordstown’s CEO, Stephen Burns, appeared on CNBC stating, “We by no means stated we had orders. We do not have a product but so by definition you’ll be able to’t have orders.” Lordstown shares fell roughly one other 9% on this information.
“We’re centered on buyers’ losses and proving Lordstown duped buyers about its order e book,” stated Reed Kathrein, the Hagens Berman associate main the investigation.
If you’re a Lordstown investor and have vital losses, or have information which will help the agency’s investigation, click here to discuss your legal rights with Hagens Berman.
XL Fleet Corp. (NYSE:XL) Securities Fraud Class Motion:
Class Interval: Oct. 2, 2020 – Mar. 2, 2021
Lead Plaintiff Deadline: Could 7, 2021
Contact An Lawyer Now:XL@hbsslaw.com
The grievance alleges that: (1) XL’s gross sales pipelines was materially inflated; (2) XL grossly overstated its buyer base; (3) XL’s know-how had been materially overstated and didn’t present clients the represented value financial savings; and (4) that XL lacks the provision chain and engineers to roll out new merchandise on the introduced timelines.
The reality emerged on Mar. 3, 2021, when analyst Muddy Waters revealed a report calling XL “Extra SPAC Trash.” Based mostly on interviews with former staff, Muddy Waters claimed that salespeople “had been pressured to inflate their gross sales pipelines materially,” and that “buyer reorder charges are in actuality fairly low” as a consequence of “poor efficiency and regulatory points.” The report additionally alleged that “no less than 18 of 33 clients XL featured had been inactive.” Muddy Waters additionally claimed that XL has “weak know-how” and that “XL’s announcement of future class 7-8 upfits appears extremely promotional” as a result of the duty is “too technologically advanced for XL engineers to ship on the promised timeline.”
Then, on Mar. 4, 2021, after XL issued a denial, Muddy Waters criticized XL’s “placeholder response,” tweeting, “We spoke to a fleet supervisor for one of many firms XL brags about in its response. He stated MPG features solely ~10%, not 25%. He stated did not assist for freeway driving. Additionally his firm purchased at a deep low cost. Inform. The. Reality.”
In response, the Firm’s share value declined $5.55, or 33% over three buying and selling days.
Lastly, on Mar. 10, 2021, after XL issued a extra detailed response, Muddy Waters launched one other report, observing that XL didn’t deny key allegations, together with (1) its inflated pipeline, (2) overstated buyer base, and (3) low buyer reorder charges.
“We’re centered on buyers’ losses and proving XL misled buyers by exaggerating its order backlog,” stated Reed Kathrein, the Hagens Berman associate main the investigation.
If you’re an XL investor and have vital losses, or have information which will help the agency’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Individuals with private info relating to SOS, Lordstown and/or XL Fleet ought to take into account their choices to assist in the investigation or reap the benefits of the SEC Whistleblower program. Underneath the brand new program, whistleblowers who present unique info could obtain rewards totaling as much as 30 % of any profitable restoration made by the SEC. For extra info, name Reed Kathrein at 844-916-0895 or electronic mail SOS@hbsslaw.com, RIDE@hbsslaw.com and/or XL@hbsslaw.com.
About Hagens Berman
Hagens Berman is a nationwide regulation agency with eight places of work in eight cities across the nation and over eighty attorneys. The agency represents buyers, whistleblowers, staff and customers in advanced litigation. Extra concerning the agency and its successes is positioned at hbsslaw.com. For the newest information go to our newsroom or observe us on Twitter at @classactionlaw.
SOURCE: Hagens Berman Sobol Shapiro LLP
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