Romeo Power, Inc.

Investigation
04/16/2021

Initial Lawsuit
04/16/2021

Lawsuit Progression
07/15/2021

Investigation

Continous Holding
October 5, 2020 to March 30, 2021
Proposed Claim
Securities Violation

Investigation regarding Romeo statements about its number of battery cell suppliers, risks of supply shortage negatively affecting its business and battery cell inventory.

Main Event

A Significant Reduction

03/30/2021

SEC Filing

Romeo discloses its Q4 and fiscal year 2020 financial results with $9M in revenue for the year and estimated revenue for 2021 in the range of $18-$40 million because of a “significant shortfall in cell capacity industrywide.” A reduction of 71-87% as compared to the October 2020 investor presentation.

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
$8.33	$10.37	$-2.04	-19.67%

See more on Factual Timeline

Initial Lawsuit

Plaintiff brings this securities class action on behalf of a class of all persons and entities who purchased the publicly traded securities of Romeo during the period October 5, 2020 through March 30, 2021, inclusive.

Filing Date
04/16/2021
Class Period
10/05/2020 to 03/30/2021
Transgression
Securities Violation
Filing Firms
Kaplan Fox & Kilsheimer LLP
Case Title
Nichols v. Romeo Power Inc.
Docket Number
1:21-cv-03362
Court
New York Southern 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) Romeo had only two battery cell suppliers, not four,
(ii) the future potential risks that Defendants warned of concerning supply disruption or shortage had already occurred and were already negatively affecting Romeo’s business, operations and prospects,
(iii) Romeo did not have the battery cell inventory to accommodate end-user demand and ramp up production in 2021,
(iv) Romeo’s supply constraint was a material hindrance to Romeo’s revenue growth,
(v) Romeo’s supply chain for battery cells was not hedged, but in fact, was totally at risk and beholden to just two battery cell suppliers and the spot market for their 2021 inventory.

Defendants

Company
Romeo Power, Inc
President
Lionel E. Selwood, Jr.
Chief Financial Officer
Lauren Webb
Chief Executive Officer
Mancini
Director
Kassin
Chairman
Carpenter
Director
Steven P. Buffone
Director
W. Grant Gregory
Director
W. Thaddeus Miller
Director
Craig Broderick

Lawsuit progression

Docket Number
1:21-cv-03362
Court
New York Southern District Court

Lead Counsel

07/15/2021

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

Lead Counsel
Glancy Prongay & Murray LLP
Lead Plaintiff
Individual
Free File
Order for lead

Amended Complaint

09/15/2021

Plaintiffs bring this federal securities class action on behalf of a class consisting of all persons and entities other than the listed defendants who or which: (1) purchased or otherwise acquired the publicly traded securities of Romeo during the period October 5, 2020 through August 16, 2021, inclusive and/or (2) held common stock of RMG Acquisition Corp. as of December 1, 2020, eligible to vote at RMG’s December 28, 2020 special meeting.