Embark Technology, Inc.

  • Active

Investigation
01/06/2022

Initial Lawsuit
04/01/2022

Lawsuit Progression
07/07/2022

Investigation

  • Continous Holding
    January 12, 2021 to January 5, 2022
  • Proposed Claim
    Securities Violation

This investigation focuses on information provided in a short report by The Bear Cave regarding company patents, competition and “economic substance.”

This post is open for investors to gather facts, and findings and track their exposure to related lawsuits. We invite investors and shareholders to contribute to this investigation for their own benefit, add events to the factual timeline below and vote on events’ pertinence.

A lawsuit was subsequently filed. We update this post regularly.

Main Event

The Bear Cave's Taken on Embark

01/06/2022

Research Report (Short)

The Bear Cave publishes a short report alleging, among other issues, “that Embark appears to lack true economic substance” and that its “current evaluation appears to be based on puffery rather than actual substance” because “[t]he company holds no patents, has only a dozen or so test trucks, and may be more bark than bite.”

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
$6.81 $8.18 $-1.37 -16.75%
See more on Factual Timeline

Initial Lawsuit

First Complaint - 04/01/2022

An Embark Technology, Inc. (EMBK) investor filed a federal securities class action lawsuit on behalf of a class consisting of all persons and entities other than defendants that purchased or otherwise acquired Embark securities between January 12, 2021, and January 5, 2022, both dates inclusive.

  • Filing Date
    04/01/2022
  • Class Period
    01/12/2021 to 01/05/2022
  • Transgression
    Securities Violation
  • Filing Firms
    Pomerantz LLP
  • Case Title
    Hardy v. Embark Technology, Inc. f/k/a Northern Genesis Acquisition Corp. II et al
  • Docket Number
    3:22-cv-02090
  • Court
    California Northern 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:

(i) Northern Genesis Acquisition Corp. II had performed inadequate due diligence into former Embark Trucks Inc.;
(ii) Embark Trucks Inc., and Northern Genesis Acquisition following the business combination held no patents and an insignificant amount of test trucks;
(iii) accordingly, the company had overstated its operational and technological capabilities;
(iv) as a result of all the foregoing, the company had overstated the business and financial prospects of the company post business combination; and
(v) as a result, the company’s public statements were materially false and
misleading at all relevant times.

Defendants

  • Company
    Embark Technology, Inc.
  • Chief Executive Officer
    Ian Robertson
  • Chief Financial Officer
    Ken Manget
  • Chief Executive Officer
    Alex Rodrigues
  • Chief Financial Officer
    Richard Hawwa

Lawsuit progression

  • Docket Number
    3:22-cv-02090
  • Court
    California Northern District Court

Lead Counsel

07/07/2022

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

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

Factual Timeline

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