
LegalZoom.com, Inc. (LZ)
Whether directors and officers of LegalZoom.com, Inc. (LZ) breached their fiduciary duties to the company and its shareholders.
Investigation
03/18/2021
Initial Lawsuit
03/18/2021
Lawsuit Progression
06/17/2021
Investigation regarding Lordstown statements about pre-order agreements with prospective customers and production of the Endurance model.
03/12/2021
Short seller analyst Hindenburg Research publishes a report on Lordstown entitled: “The Lordstown Motors Mirage: Fake Orders, Undisclosed Production Hurdles, and a Prototype Inferno.”
In the report, Hindenburg notes that Lordstown has “no revenue and no sellable product,”
and that the Company “has misled investors on both its demand and production capabilities.” The Hindenburg report also alleges that Lordstown’s “orders are largely fictitious and used as a prop to raise capital and confer legitimacy,” and that a former employee “explained how the company is experiencing delays and making ‘drastic’ design modifications, putting [Lordstown] an estimated 3-4 years away from production,” rather than the Company being “on track” for a September 2021 production start.
Stock Impact
Close | Previous close | Price variation | Percentage variation |
---|---|---|---|
$14.78 | $17.71 | $-2.93 | -16.54% |
This is a federal securities class action on behalf of all investors who purchased or otherwise acquired shares of Lordstown Motors Corp. (formerlyknown as DiamondPeak Holdings Corp.) securities between August 3, 2020 and March 17, 2021, inclusive.
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) the Company’s purported pre-orders were non-binding;
(ii) many of the would-be customers who made these purported pre-orders lacked the means to make such purchases and/or would not have credible demand for Lordstown’s Endurance;
(iii) Lordstown is not and has not been “on track” to commence production of theEndurance in September 2021;
(iv) the first test run of the Endurance led to the vehicle bursting into flames within 10 minutes;
(v) as a result, the Company’s public statements were materially false and misleading at all relevant times.
06/17/2021
The court issued an order appointing the lead plaintiff and lead counsel.
09/10/2021
Plaintiffs bring this securities class action on behalf of themselves and all persons or entities who: (a) purchased Lordstown’s publicly traded warrants ("RIDEW" and prior ticker “DPHCW”), Lordstown’s publicly traded units (traded “DPHCU”), or any publicly traded option to purchase or sell Lordstown’s Class A Common Stock, from August 3, 2020, through July 2, 2021, inclusive, and/or; (b) held Lordstown’s Class A Common Stock as of September 21, 2020.
Operative complaint
11/09/2021
A motion to dismiss was filed with the court.
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