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QS.US
id: 1257

QuantumScape (QS) $47.5M Investor Settlement

N.D. California
Court
3:21-cv-00058
Case number
27 Nov 2020
Class period Start
14 Apr 2021
Class period End
QuantumScape (QS) has agreed to settle $47.5M with investors to resolve claims for overstating the quality of their battery technology.

Outline

Back in 2020, the news reported significant flaws in QuantumScape's battery technology, including charge time, and temperature range capabilities. Following this, $QS dropped and the company faced a lawsuit from investors.

Timeline
  • On January 4, 2021: Seeking Alpha published an article titled "QuantumScape’s Solid-State Batteries Have Significant Challenges".
  • After this news, on the same day, $QS dropped by 40.84%.
  • On January 5, 2021: QuantumScape faced a lawsuit from investors for overestimating the state of their battery’s technology.
Background In 2020, QuantumScape announced advancements in its battery technology, including battery life, charge time, and scalability. The company stated that the batteries were “faster than either conventional battery or alternative solid-state approaches are capable of delivering”.

Despite these claims, on January 4, 2021, an article titled "QuantumScape’s Solid-State Batteries Have Significant Challenges" was published on Seeking Alpha.

They pointed out that the battery’s power and lifespan were exaggerated and that the batteries were unlikely to properly work in electric vehicles.

On the same day, following the publication of this article, $QS fell by 40.84%.

After that, in 2021, QuantumScape was sued by shareholders who claimed the company misled them about the true capabilities and prospects of its battery technology.

What can investors expect now?

QuantumScape (QS) has agreed to settle $47.5M with investors to resolve claims for overstating the quality of their battery technology.

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
Stipulative Settlement
Alleged Offence
Misleading Statements
Financial Misrepresentation
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Filing date
05 January 2021
Lead Plaintiff Deadline
08 March 2021
Plaintiffs
Frank Fish
Attorneys
Glancy Prongay & Murray LLP and The Law Offices of Frank R. Cruz
Defendants
Jagdeep Singh, Kevin Hettrich, Timothy Holme
Judge
William H. Orrick III
Trades matching type
FIFO
+$47,500,000
Cash Settlement Amount

Frequently Asked Questions

Quantumscape Corp

QuantumScape Corporation, a research and development stage company, focuses on the development and commercialization of solid-state lithium-metal batteries for electric vehicles and other applicati...

    Ticker
    QS.US
    ISIN
    US74767V1098
    CIK
    1811414
    Sector
    Consumer Cyclical
    Industry
    Auto Parts
    Country
    USA
    Address
    1730 Technology Drive, San Jose, CA, United States, 95110