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Mullen Automotive, Inc.

Class Action
  • Active
Investigation
04/06/2022
Initial Lawsuit
05/05/2022
Lawsuit Progression
07/05/2022

Investigation

Hindenburg Research’s report, backing their short position, triggers this investors investigation. Hindenburg alleges misrepresentation of test results, misleading company press releases, a failed partnership with Qiantu (citing legal documents), major production hurdles and misleading statements regarding its production facilities.

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  • Investigation Date
    04/06/2022
  • Hypothetical Affected Period
    June 15, 2020 to April 6, 2022
  • Hypothetical Transgression
    Securities Violation
Main Event

Hindenburg Research

04/06/2022

Research Report (Short)

Hindenburg publishes a short report alleging misrepresentation of test results, misleading company press releases, a failed partnership with Qiantu (citing legal documents), major production hurdles and misleading statements regarding its production facilities. For instance, regarding the February 2022 press release:

  • “Mullen recently press released an update on its battery testing, sending its stock soaring 145% in a day. In reality, the “news” appears to be a rehash of testing the company had already announced in 2020.
  • Mullen apparently misrepresented the test results, according to the CEO of the company that performed the tests. Its CEO told us of Mullen’s press release: “We never would have said that. We never did say it and certainly wouldn’t have said it based on the results of testing that battery.”“
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
$2.38 $2.65 $-0.27 -10.19%
See more on Factual Timeline

Initial Lawsuit

This is a class action on behalf of persons or entities who purchased or otherwise acquired publicly traded Mullen securities between June 15, 2020 and April 6, 2022, inclusive.

  • Filing Date
    05/05/2022
  • Class Period
    06/15/2020 to 04/06/2022
  • Transgression
    Securities Violation
  • Filing Firms
    The Rosen Law Firm, P.A.
  • Case Title
    Schaub v. Mullen Automotive, Inc.
  • Docket Number
    2:22-cv-03026
  • Court
    California Central 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) Mullen overstates its ability and timeline regarding production;
(2) Mullen overstates its deals with business partners, including Qiantu;
(3) Mullen overstates its battery technology and capabilities;
(4) Mullen overstates its ability to sell its branded products;
(5) Net Element did not conduct proper due diligence into Mullen Technologies;
(6) the Dragonfly K50 was not (solely) delayed due to the COVID-19 pandemic; and
(7) as a result, Defendants’ public statements were materially false and/or misleading at all relevant times.

Defendants

  • Company
    Mullen Automotive, Inc., formerly known as Net Element, Inc.
  • Chief Executive Officer
    David Michery
  • Chief Executive Officer
    Oleg Firer

Lawsuit progression

  • Docket Number
    2:22-cv-03026
  • Court
    California Central District Court

The lead plaintiff deadline has passed, we will update this page as the lawsuit progresses.
Last event retrieved on 09/24/2022.

Factual Timeline

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