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PTRA.US
id: 779

Proterra Inc. (PTRA) Financial Misrepresentation Case

N.D. California
Court
3:23-cv-03519
Case number
02 Aug 2022
Class period Start
15 Mar 2023
Class period End
12 Sept 2023
Lead Plaintiff motion deadline
  • 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:
  1. Proterra repeatedly stated the $523 million of cash on its balance sheet meant Proterra had abundant liquidity and financial stability;
  2. Proterra’s new Greer, South Carolina factory would continue to improve production efficiency and gross margins.
Case Status
Motion to dismiss
Alleged Offence
Misleading Statements
Failure to Disclose
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
16 March 2023
Filing date
14 July 2023
Lead Plaintiff Deadline
12 September 2023
Collecting participants…

Proterra Inc

Proterra Inc. provides commercial vehicles in the United States, the European Union, Canada, the United Kingdom, Australia, Japan, and Türkiye. The company's Proterra Powered & Energy business unit...

    Ticker
    PTRA.US
    ISIN
    US74374T1097
    CIK
    1820630
    Sector
    Industrials
    Industry
    Farm & Heavy Construction Machinery
    Country
    USA
    Address
    1815 Rollins Road, Burlingame, CA, United States, 94010