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NRDE.US
id: 1156

Lordstown (RIDE) $10M Investor Settlement

It is still possible to file a late claim. The court will decide whether to accept late claims or not.
N.D. Ohio
Court
4:21-cv-00616
Case number
03 Aug 2020
Class period Start
02 Jul 2021
Class period End
20 Jul 2024
Claim deadline
Lordstown Motors ($RIDE) decided to settle up to $10M with investors to end claims related to Hindenburg's investigation and Endurance issues.

Outline:

In 2021, Hindenburg Research published a report on Lordstown Motors. The key points of this research were that the company fabricated pre-orders and faced issues with the Endurance prototype. Following this news, $RIDE significantly fell, and Lordstown faced a lawsuit from investors.

Timeline:
  • On March 12, 2021: Hindenburg Research published a report on Lordstown Motors titled "The Lordstown Motors Mirage: Fake Orders, Undisclosed Production Hurdles, and a Prototype Inferno".
  • Following this news, $RIDE fell over 16% the same day.
  • On March 17, 2021: Lordstown Motors' CEO disclosed an SEC inquiry during an earnings call.
  • After that, $RIDE fell over 13% the next day.
  • On March 18, 2021: $RIDE stockholder filed a claim against Lordstown based on all these undisclosed issues.
Background:

Hindenburg announced that it had taken a short position on Lordstown Motors, saying the company had “no revenue and no sellable product, which we believe has misled investors on both its demand and production capabilities.”

Hindenburg also stated that “extensive research reveals that the company’s orders appear largely fictitious and used as a prop to raise capital and confer legitimacy.”

Further, the report included photos and a 911 call about a Lordstown prototype catching fire during a test drive.

There was also claimed that CEO Steve Burns paid consultants for truck pre-orders since 2016 while at Workhorse.

In response to the Wall Street Journal, Burns called the report “half-truths and lies” and accused Hindenburg of trying to damage the stock before their first earnings report.

After all that, Burns announced during their first earnings call that the company is complying with an SEC request and has formed a committee to review Hindenburg’s claims.

What can investors expect now?

Lordstown Motors recently decided to resolve the suit and settle up to $10M with investors to end claims related to Hindenburg's investigation and Endurance issues.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Case Status
Accepting Late Claims
Alleged Offence
Misleading Statements
Financial Misrepresentation
Failure to Disclose
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.045
Filing date
18 March 2021
Plaintiffs
Matthew Rico, Sulayman Zuod, Jesse Brury, Raymond Romano
Attorneys
Entwistle & Cappucci LLP (Austin, TX), Hagens Berman Sobol Shapiro LLP (Berkeley, CA), Labaton Sucharow LLP (New York, NY), The Rosen Law Firm, P.A. (New York, NY), The Schall Law Firm (Los Angeles, CA)
Defendants
Stephen S. Burns, Rich Schmidt, Julio Rodriguez, Michael Fabian, Andrew C. Richardson, David T. Hamamoto, Judith A. Hannaway, Steven R. Hash, Shane Brown, Darren Post, Shane Brown, Caimin Flannery
Judge
Hon. Patricia A. Gaughan
Administrator
Strategic Claims Services
Settlement agreement date
2024-03-06
Court hearing date
11 June 2024
Exclusion deadline
21 May 2024
Objection deadline
21 May 2024
Hearing deadline
21 May 2024
Trades matching type
FIFO
+$10,000,000
Cash Settlement Amount

Frequently Asked Questions

Nu Ride Inc.

Nu Ride develops, manufactures, and sells Endurance, an electric full-size pickup truck for fleet customers in the United States. Nu Ride, previously known as Lordstown Motors Corp. was incorporate...

    Ticker
    NRDE.US
    ISIN
    US54405Q2093
    CIK
    0001759546
    Sector
    Industrials
    Industry
    Auto Manufacturers
    Country
    United States