Lordstown Motors Accused of Deceiving Investors Regarding Potential Sales of EV Pickup

Lordstown Motors Corp
Lordstown Motors charged with misleading investors about the sales potential of its EV pickupThe Securities and Exchange Commission has charged bankrupt Lordstown Motors with misleading investors about the sales prospects of its Endurance electric pickup truck. Lordstown has agreed to pay $25.5 million as a result — money that the SEC says will go towards settling a number of pending class action lawsuits against the company. “We allege that, in a highly competitive race to deliver the first mass-produced electric pickup truck to the U.S. market, Lordstown oversold true demand for the Endurance,” Mark Cave, Associate Director of the SEC’s Division of Enforcement said in a statement. “Exaggerations that misrepresent a public company’s competitive advantages distort the capital markets and foil investors’ ability to make informed decisions about where to put their money.”The SEC says its investigation into Lordstown Motors is ongoing. This story is developing…

“Discover the Exciting Launch of a Cutting-Edge EV Venture by Lordstown Motors’ Founder, Featuring Familiar and Powerful Trucks”

Landx Motors Lordstown Endurance
The ousted founder of bankrupt EV startup Lordstown Motors has launched a new company called LandX Motors, that prominently displays the same electric pickup truck he once promised would beat Tesla, Ford and General Motors to market. While LandX Motors doesn’t explicitly refer to the trucks as the Endurance, a video on the website shows EV trucks that have the Lordstown badge. A LandX Motors spokesperson responded to an email, but didn’t provide any further information and declined to answer questions. He founded Lordstown Motors in 2019 after leaving a different struggling EV startup, Workhorse. Of the 16 employees who list LandX Motors as their employer on LinkedIn, 13 of them used to work at Lordstown Motors.

“SEC Demands $45M from Insolvent Lordstown Motors”

Lordstown Motors Corp
Bankrupt EV startup Lordstown Motors could be on the hook for $45 million for violating federal securities laws. The SEC first started probing Lordstown Motors in 2021, just days after short-selling research firm Hindenburg Research published a report laying out a number of allegations of fraud. Lawyers for Lordstown Motors revealed early on in the bankruptcy process that it had held confidential settlement talks with the SEC. Lordstown Motors and a lawyer for the SEC did not immediately respond to requests for comment. Some investigations — like the one into Lucid Motors, or struggling EV startup Workhorse — have been dropped without any enforcement action.