PTRA.US
id: 779
Proterra Inc. (PTRA) Financial Misrepresentation Case
The settlement terms have been submitted to the court for approval.
N.D. California
Court5:23-cv-03519
Case number08/02/2022
Class period Start03/15/2023
Class period End- Proterra disclosed a net loss of $81M for Q4 2022 and going concern qualification.
- $PTRA price fell over 53%, damaging investors.
- Investors suspect Proterra & its Leaders of financial misrepresentations.
On March 15, 2023, Proterra (PTRA) announced it had a net loss of $81 million and a gross loss of $20.3 million for Q4 2022.
- Proterra also disclosed it expected the audit report to be included in its Form 10-K annual report would contain a going concern qualification, which would be an event of default under Proterra’s debt agreements.
- Proterra disclosed it had obtained a limited waiver under its convertible notes for violating a minimum liquidity event.
On this news, the $PTRA price fell over 53%, damaging investors.
Going back to August 2, 2022, Proterra’s CFO Karina Franco Padilla, described Proterra’s strong financial position and stated that “we have . . . the balance sheet to . . . ride out potential economic turbulence over the next year.”
Taking all representations into account, Investors have reasons to suspect Proterra and its Leaders of misleading and failing to disclose that:
- Proterra repeatedly stated the $523 million of cash on its balance sheet meant Proterra had abundant liquidity and financial stability;
- Proterra’s new Greer, South Carolina factory would continue to improve production efficiency and gross margins.
Case Status
Stipulative Settlement
Alleged Offence
Misleading Statements,
Failure to Disclose,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.12
Filing date
07/14/2023
Lead Plaintiff Deadline
09/12/2023
Plaintiffs
Jeremy Villanueva
Attorneys
Robbins Geller Rudman & Dowd, Levi & Korsinsky
Defendants
Gareth T. Joyce; Karina Franco Padilla; Amy E. Ard
Judge
Eumi K. Lee
Administrator
A.B. Data Ltd
Attorney fee
$7,500,000
Trades matching type
FIFO
+$29,000,000
Cash Settlement Amount