Arcimoto, Inc.

  • Active

Investigation
04/19/2021

Initial Lawsuit
04/19/2021

Lawsuit Progression
07/14/2021

Investigation

  • Continous Holding
    February 14, 2018 to March 22, 2021
  • Proposed Claim
    Securities Violation

Investigation regarding statements made by Arcimoto about preorders of Fun Utility Vehicle (FUV), safety recalls and undisclosed related parties and transactions.

Main Event

A "dubious stock promotion"?

03/23/2021

Research Report (Short)

Bonitas Research publishes a report alleging fabricated pre-orders, undisclosed related party transactions, disregarded safety concerns and “dubious stock promotion for self-enrichment at the expense of minority shareholders”:

“Fake “Pre-Orders” generated fake demand. Failed to notify customers that ~100% of vehicles are under safety recall. $FUV largest customer is undisclosed related party FOD Capital who sold 67% of its $FUV holdings in 2H’20, pump & dump style”

The stock impact compares the closing price immediately preceding the date of the event and the following closing price. The price difference also reflects the overall mix of information.

Stock Impact

Close Previous close Price variation Percentage variation
$15.67 $16.77 $-1.1 -6.56%
See more on Factual Timeline

Initial Lawsuit

This is a federal securities class action on behalf of all persons and entities who purchased the publicly traded securities of Arcimoto between February 14, 2018 and March 22, 2021, both dates inclusive.

  • Filing Date
    04/19/2021
  • Class Period
    02/14/2018 to 03/22/2021
  • Transgression
    Securities Violation
  • Filing Firms
    The Rosen Law Firm, P.A.
  • Case Title
    Barnette v. Arcimoto Inc.
  • Docket Number
    1:21-cv-02143
  • Court
    New York Eastern District Court
  • Free File
    Complaint

Allegations

According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors that:

(1) the preorders of Arcimoto’s FUVs were fabricated or never completed, with only 19 units delivered out of an alleged preorder of 422;
(2)Arcimoto failed to disclose to customers that nearly 100% of its vehicles delivered were under safety recall;
(3) Arcimoto’s largest customer, R-Key-Moto, was an undisclosed related party owned by insider FOD Capital, LLC;
(4) Arcimoto’s partnership with HULA was an undisclosed related party transaction;
(5) as a result, defendants’ public statements were materially falseand/or misleading at all relevant times.

Defendants

  • Company
    Arcimoto
  • Chief Executive Officer
    Mark Frohnmayer
  • Chief Financial Officer
    Douglas M. Campoli

Lawsuit progression

  • Docket Number
    1:21-cv-02143
  • Court
    New York Eastern District Court

Lead Counsel

07/14/2021

The court issued an order appointing the lead plaintiff and lead counsel.

  • Lead Counsel
    The Rosen Law Firm, P.A.
  • Lead Plaintiff
    Individual
  • Free File
    Order for lead

Amended Complaint

09/20/2021

Plaintiffs bring this action as a federal securities class action . . . on behalf of a class, consisting of all persons and entities who (1) purchased Arcimoto’s publicly traded common stock at artificially inflated prices between October 2, 2019 and March 22, 2021, both dates inclusive . . . and/or (2) held Arcimoto common stock as of the close of business on April 22, 2020 and were eligible to vote at Arcimoto’s June 20, 2020 annual shareholder meeting.

  • Updated Class Period
    10/02/2019 to 03/22/2021
  • Free File
    Amended Complaint

    • Operative complaint

Motion to Dismiss

03/11/2022

A motion to dismiss was filed with the court.

[stockdio-historical-chart symbol=”FUV” stockExchange=”NYSENasdaq” width=”500″ height=”330″ motif=”blinds” palette=”humanity” includeVolume=false]

Factual Timeline

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