REUTERS: Federal prosecutors in Manhattan are looking into Lordstown Motors Corp’s vehicle pre-orders and merger with blank-check company DiamondPeak Holdings, according to the company. The Securities and Exchange Commission had previously requested documents and information related 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 about pre-orders for their Endurance vehicle worth $1.4 billion.
In June, an internal review on Hindenburg’s claims found that Lordstown had exaggerated the quality of its electric vehicle pre-orders.
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 company also stated that it had no binding orders, contradicting previous statements made by the company’s president. (In Bengaluru, Chavi Mehta reported; Devika Syamnath edited)
Reuters is the source of this information./n
Read More