July 15, 2021
(Reuters) – Lordstown Motors Corp stated federal prosecutors in Manhattan are investigating the electric-truck maker’s car pre-orders and its merger with blank-check firm DiamondPeak Holdings.
The U.S. Securities and Trade Fee had earlier requested the electrical pickup truck maker to provide paperwork and data associated to its merger and pre-orders.(https://bit.ly/3B5gwWe)
In March, shares of the corporate slumped after funding analysis agency Hindenburg Analysis stated Lordstown had misled customers and buyers about pre-orders price $1.4 billion for its Endurance truck.
An inside investigation into Hindenburg’s claims in June acknowledged that Lordstown had overstated the standard of pre-orders for its electrical vans.
The corporate’s chief government and finance head additionally resigned, shortly after Lordstown stated in June that it might not have the funds for to remain in enterprise over the following yr. The corporate additionally stated it had no binding orders, backtracking from earlier feedback made by the startup’s president.
(Reporting by Chavi Mehta in Bengaluru; Enhancing by Devika Syamnath)