U.S. federal prosecutors investigating Lordstown Motors

15 JULY (Reuters) – Federal prosecutors in Manhattan are looking into Lordstown Motors Corp’s (RIDE.O) vehicle pre-orders and its merger with blank-check provider DiamondPeak Holdings, according to the company. The Securities and Exchange Commission had previously requested papers and information connected to the electric pickup truck maker’s merger and pre-orders. (https://bit.ly/3B5gwWe) Lordstown’s stock plummeted in March when investment research firm Hindenburg Research said the company had misled consumers and investors over $1.4 billion in pre-orders for its Endurance vehicle. In June, an internal review on Hindenburg’s claims found that Lordstown had exaggerated the quality of its electric vehicle pre-orders. find out more The company’s CEO and CFO also departed, shortly after Lordstown said in June that it might not be able to stay in operation for the following year. The corporation also stated that it had no binding orders, contradicting previous statements made by the company’s president. find out more Chavi Mehta contributed reporting from Bengaluru, and Devika Syamnath edited the piece. The Thomson Reuters Trust Principles are our standards./nRead More