Faraday investors may receive additional information about the case by clicking the link "Submit Your Information" above. If you are a member of the class described below, you may no later than February 22, 2022 move the Court to serve as lead plaintiff of the class, if you so choose.
A class action lawsuit has been filed on behalf of those who purchased or acquired Faraday Future Intelligent Electric Inc. (“Faraday”) (NASDAQ: FFIE; FFIEW) f/k/a Property Solutions Acquisition Corp. (“PSAC”) (NASDAQ: PSAC; PSACW) securities between January 28, 2021 and November 15, 2021, inclusive (the “Class Period”).
Case Background:
Faraday designs and engineers next-generation smart electric connected vehicles. PSAC was a special purpose acquisition company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. On January 28, 2021, PSAC and FF Intelligent Mobility Global Holdings Ltd. (“Legacy Faraday”) announced that PSAC and Legacy Faraday entered into a definitive agreement for a business combination, and that the combined company would be renamed “Faraday Future Intelligent Electric Inc.” (the “Business Combination”). On July 21, 2021, Faraday announced that it had completed the Business Combination. Throughout the Class Period, the defendants touted Faraday’s production capabilities and business prospects.
The truth began to emerge on October 7, 2021, when J Capital Research published a report alleging, among other things, that Faraday was unlikely to ever sell a car, noting that after eight years in business, Faraday has “failed to deliver a car,” “has reneged on promises to build factories in five localities in the U.S. and China,” “is being sued by dozens of unpaid suppliers,” and “has failed to disclose that assets in China have been frozen by courts.” Moreover, the report alleged that Faraday’s claimed 14,000 deposits are fabricated because 78% of these reservations were made by a single undisclosed company that is likely an affiliate. The report further alleged that contrary to representations of progress toward manufacturing made by Faraday in September 2021, former engineering executives did not believe that the car was ready for production.
Following this news, Faraday’s share price fell $0.35 per share, or more than 4%, to close at $8.05 per share on October 8, 2021.
Then, on November 15, 2021, Faraday announced that it would be unable to file its Form 10-Q for the fiscal quarter ended September 30, 2021 on time. Faraday further announced that its board of directors “formed a special committee of independent directors to review allegations of inaccurate disclosures,” including the claims in the J Capital Research report.
Following this news, Faraday’s share price fell $0.28 per share, or approximately 3%, to close at $8.83 per share on November 16, 2021.
The complaint alleges that throughout the Class Period, the defendants failed to disclose to investors that: (1) Faraday had assets in China frozen by courts; (2) a significant percentage of its deposits for future deliveries were attributable to a single undisclosed affiliate; (3) Faraday’s cars were not as close to production as Faraday claimed; (4) as a result of previously issued statements that were misleading and/or inaccurate, Faraday could not timely file its quarterly report; and (5) as a result of the foregoing, the defendants’ positive statements about Faraday’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453 or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.