NEW YORK, April 22, 2022 (GLOBE NEWSWIRE) — Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, reminds investors that class action lawsuits have been filed on behalf of shareholders of Volta, Inc. (NYSE: VLTA), Embark Technology, Inc. (NASDAQ: EMBK), Lucid Group, Inc. (NASDAQ: LCID) and Lilium NV (NASDAQ: LILM). Shareholders have until the deadlines below to ask the court to serve as lead plaintiff. Additional information on each case can be found at the link provided.
Volta, Inc. (NYSE: VLTA)
Course period: August 2, 2021 – March 28, 2022
Lead Applicant Deadline: May 31, 2022
On August 26, 2021, Volta Industries, Inc. (“Legacy Volta”), a private entity, and Tortoise Acquisition Corp. II, a special purpose acquisition company, completed a business combination pursuant to which the combined entity was named Volta Inc. (the “Business Combination”).
On March 2, 2022, after market close, Volta disclosed that the financial impact of restating its third quarter 2021 financial results was greater than previously announced, expecting to report a net loss of $69.7 million. dollars for the quarter. Following this news, the Company’s share price fell $0.11, or 2.6%, to close at $4.01 per share on March 3, 2022, on unusually high trading volume. raised.
Then, on March 21, 2022, Volta announced that it would reschedule its fourth quarter and full year 2021 financial results. As a result of this news, the Company’s share price fell $0.38 , or 8.4%, to close at $4.12 per share on March 21, 2022, on unusually high trading volume.
Then, on March 28, 2022, Volta announced that its founders, Scott Mercer and Christopher Wendel, had resigned as CEO and chairman, respectively, and from the company’s board of directors. Following this news, the Company’s share price fell $0.76, or 18%, to close at $3.37 per share on March 28, 2022, on unusually high trading volume.
The Complaint filed in this Class Action alleges that throughout the Class Period, the Defendants made materially false and/or misleading statements, and failed to disclose material adverse facts regarding the business, operations and societal prospects. Specifically, the defendants failed to disclose to investors: (1) that Volta improperly accounted for the restricted stock units issued in connection with the business combination; (2) that, as a result, the Company had underestimated its net loss for the third quarter of 2021; (3) there were material weaknesses in the Company’s internal control over financial reporting that resulted in a material error; (4) that as a result of the foregoing, the Company would restate its financial statements; (5) that as a result of the foregoing, the founders of Legacy Volta would soon leave the Company; (6) that, as a result, the Company’s financial results would be adversely affected; and (7) that as a result of the foregoing, defendants’ positive statements about the company’s business, operations and prospects were materially misleading and/or lacked reasonable basis.
For more information on the Volta class action, please visit: https://bespc.com/cases/VLTA
Embark Technology, Inc. (NASDAQ: EMBK)
Course period: January 12, 2021 – January 5, 2022
Lead Applicant Deadline: May 31, 2022
Embark develops self-driving software solutions for the trucking industry in the United States. The company was originally a special purpose acquisition company, also known as a blank check company, which is a development-stage company that does not have a business plan or specific objective or has indicated its business plan is to engage in a merger or acquisition with an unidentified company or companies, other entity or person.
On November 10, 2021, the Company completed a merger transaction with Embark Trucks Inc., a Delaware corporation (“Legacy Embark”), whereby, among other things, the Company changed its name from “Northern Genesis Acquisition Corp. II” in “Board Technology, Inc.” (the “Combination of Companies”).
The Complaint alleges that throughout the Class Period, the Defendants made materially false and misleading statements regarding the company’s business, operations and compliance policies. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (i) the company performed inadequate due diligence regarding Legacy Embark; (ii) Legacy Embark and the Company after the Business Combination held no patents and an insignificant number of test trucks; (iii) as a result, the Company had overestimated its operational and technological capabilities; (iv) as a result of all of the foregoing, the Company had overestimated the business and financial prospects of the Company after the Business Combination; and (v) as a result, the Company’s public statements were materially false and misleading at all material times.
On January 6, 2022, The Bear Cave released a short report entitled “Problems at Embark Technology (EMBK)” (the “Bear Cave Report”). The Bear Cave report alleged, among other things, “that Embark appears to lack real economic substance” and that its “current valuation appears to be based on puff rather than actual substance”, noting that “[t]The company holds no patents, only has a dozen test trucks, and may be more barking than biting.
On this news, Embark’s stock price fell $1.37 per share, or 16.75%, to close at $6.81 per share on January 6, 2022.
For more information on the Embark class action, please visit: https://bespc.com/cases/EMBK
Lucid Group, Inc. (NASDAQ: LCID)
Course period: November 15, 2021 – February 28, 2022
Lead Applicant Deadline: May 31, 2022
On February 28, 2022, Lucid revealed that it had only shipped around 125 EVs in 2021 – 452 less than expected – and would only produce between 12,000 and 14,000 EVs in 2022, despite claims previous reports that it would produce 20,000. The company also announced that it would delay the launch of its Lucid Gravity SUV from 2023 to 2024, citing “extraordinary supply chain and logistics challenges” as the cause.
On this news, Lucid common stock fell $3.99, or 13.8%, to close at $24.99 per share on March 1, 2022, hurting investors.
The Complaint filed in this Class Action alleges that throughout the Class Period, the Defendants made materially false and/or misleading statements, and failed to disclose material adverse facts regarding the business, operations and societal prospects. Specifically, the defendants overstated Lucid’s production capabilities while concealing that “extraordinary supply chain and logistics challenges” had hampered the company’s operations since the beginning of the Class Period.
For more information on the Lucid class action, please visit: https://bespc.com/cases/LCID
Lilium NV (NASDAQ: LILM)
Course period: March 30, 2021 – March 14, 2022
Lead Applicant Deadline: June 17, 2022
On March 14, 2022, Iceberg Research published a short report entitled “Lilium NV – The Losing Horse in the eVTOL [electric vertical take-off and landing aircraft] Race” (the “Iceberg Report”). The Iceberg report stated, among other things, that “[m]no expert has cast serious doubts on “the viability of the Company’s Lilium Jet achieving its goal of “flying[ing] up to 155 miles[,]citing “its configuration of 36 ducted fans (recently reduced to 30) which guzzle power during takeoff and landing (hovering), and leaves little power for actual flight.” The Iceberg report also noted that if “Lilium promises that its Jet has easy access to battery cells with an energy density of 320-330 Wh/kg[,]” “[o]ne of the sources on which he relies to show that these batteries are at hand is . . . an associated company 34.8% owned by Lilium whose CEO Sujeet Kumar has been accused by General Motors of misrepresenting battery performance, while working at his former company Envia Systems. The Iceberg report further noted that Lilium’s CEO “had no significant professional experience in aerospace prior to launching Lilium in 2015” and “believed[d] that Lilium has about 18 months before its cash runs out.
On this news, Lilium’s stock price fell $1.25 per share, or 33.88%, to close at $2.44 per share on March 14, 2022.
According to the lawsuit, the defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose: (1) Lilium materially exaggerates the design and capabilities of the Lilium Jet; (2) Lilium significantly overestimates the likelihood of early certification of the Lilium Jet; (3) Lilium misrepresents its ability to obtain or create the batteries needed for the Lilium Jet; (4) the SPAC merger would not and did not generate sufficient cash to commercially launch the Lilium Jet; (5) Qell Acquisition Corp. failed to exercise due diligence regarding the merger; and (6) as a result, the defendants’ public statements were materially false and/or misleading at all relevant times. When the real details entered the market, the lawsuit claims investors suffered damages.
For more information on the Lilium class action, please visit: https://bespc.com/cases/LILM
About Bragar Eagel & Squire, PC:
Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivatives and other complex litigation before state and federal courts across the country. For more company information, please visit www.bespc.com. Lawyer advertisement. Prior results do not guarantee similar results.
Bragar Eagel & Squire, CP Brandon Walker, Esq. Alexandra B. Raymond, Esq. (212) 355-4648 [email protected]