Lordstown Motors accused of deceptive buyers concerning the gross sales potential of its electrical pickup


The Securities and Alternate Fee has accused Lordstown Motors went bankrupt by deceptive buyers concerning the gross sales prospects of its Endurance electrical pickup truck.

Lordstown agreed to pay $25.5 million because of this – cash that the SEC says will go towards settling various pending class motion lawsuits towards the corporate.

“We allege that, in a extremely aggressive race to ship the primary mass-produced electrical pickup truck to the U.S. market, Lordstown has oversold the true demand for the Endurance,” mentioned Mark Cave, affiliate director of the enforcement division. of the SEC Act, in a press launch. “Exaggerations that misrepresent a public firm’s aggressive benefits distort monetary markets and hurt buyers’ capability to make knowledgeable selections about the place to place their cash.”

The SEC says its investigation into Lordstown Motors is ongoing.

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