U.S. federal prosecutors investigating Lordstown Motors

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FILE PHOTO: A Lordstown Motors beta version of its all electric pickup truck, the Endurance, is seen at the Lordstown Assembly Plant in Lordstown, Ohio, U.S., June 21, 2021. REUTERS/Rebecca Cook

July 15, 2021

(Reuters) – Lordstown Motors Corp said federal prosecutors in Manhattan are investigating the electric-truck maker’s vehicle pre-orders and its merger with blank-check company DiamondPeak Holdings.

The U.S. Securities and Exchange Commission had earlier asked the electric pickup truck maker to produce documents and information related to its merger and pre-orders.(https://bit.ly/3B5gwWe)

In March, shares of the company slumped after investment research firm Hindenburg Research said Lordstown had misled consumers and investors about pre-orders worth $1.4 billion for its Endurance truck.

An internal investigation into Hindenburg’s claims in June acknowledged that Lordstown had overstated the quality of pre-orders for its electric trucks.

The company’s chief executive and finance head also resigned, shortly after Lordstown said in June that it may not have enough money to stay in business over the next year. The company also said it had no binding orders, backtracking from earlier comments made by the startup’s president.

(Reporting by Chavi Mehta in Bengaluru; Editing by Devika Syamnath)






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