Lordstown Motors settles SEC charges over misleading investors (updated)

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29/02/2024 21:59

(Add background on the case, settlement details)
       WASHINGTON, Feb 29 (Reuters) - The U.S. Securities and
Exchange Commission on Thursday said it has settled charges
against Lordstown Motors Corp  RIDEQ.PK  that the electric
vehicle manufacturer of misled investors about the sales
prospects of its flagship truck, the Endurance. 
    Lordstown, which filed for bankruptcy in 2023, went public
by merging with a special purpose acquisition company (SPAC) in
2020. The company exaggerated demand, claiming 100,000
pre-orders for the truck, and misrepresented the timeline for
delivering the Endurance, regulators said in a statement.
    Lordstown, which did not admit to or deny the SEC's
findings, agreed to a cease-and-desist order.
    The SEC ordered the firm to disgorge $25.5 million of
ill-gotten gains, which the regulator said was satisfied by
Lordstown's payments to resolve class action lawsuits against
it. A lawyer for the company did not immediately respond to
request for comment.
    
    

 (Reporting by Kanishka Singh in Washington and Chris Prentice
in New York; Editing by Bill Berkrot)
 ((Kanishka.Singh@thomsonreuters.com; +12024508248;))