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Kessler Topaz Meltzer & Check, LLP: Investor Class Action Filed Against Lordstown Motors Corp. - RIDE; RIDEW f/k/a DiamondPeak Holdings Corp. - DPHC for Securities Fraud Violations

Notice is hereby given that a class action lawsuit has been filed on behalf of those who purchased or acquired Lordstown Motors Corp. (“Lordstown”) (NASDAQ: RIDE; RIDEW), f/k/a DiamondPeak Holdings Corp. (NASDAQ: DPHC) (“DiamondPeak”) securities between August 3, 2020 and March 24, 2021, inclusive (the “Class Period”).

Lordstown investors may receive additional information about the case by clicking the link "Submit Your Information" above.

Lordstown is an automotive company founded for the purpose of developing and manufacturing light duty electric trucks targeted for sale to fleet customers. Lordstown’s purported flagship vehicle is the “Endurance,” an electric full-size pickup truck. DiamondPeak was structured as a special purpose acquisition company. 

The Class Period commences on August 3, 2020, when Lordstown and DiamondPeak announced that they had entered into a definitive merger agreement.  The August 3, 2020 release provided, in relevant part, that the transaction valued Lordstown “at an implied $1.6 billion pro forma equity value,” and that the transaction was expected to deliver approximately $675 million in gross proceeds. The release also announced that the transaction was expected to close in the fourth quarter of 2020.  Throughout the Class Period, Lordstown repeatedly lauded its pre-order agreements with prospective customers. Moreover, Lordstown stated numerous times that it was “on track” to begin production of the Endurance in September 2021. 

However, before the markets opened on March 12, 2021, Hindenburg Research, LLC (“Hindenberg Research”) published a report on Lordstown entitled: “The Lordstown Motors Mirage: Fake Orders, Undisclosed Production Hurdles, and a Prototype Inferno.” The report noted that Lordstown has “no revenue and no sellable product,” and that Lordstown “has misled investors on both its demand and production capabilities.” The report concluded 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 Lordstown being “on track” for a September 2021 production start.  Following this news, the price of Lordstown’s common stock fell approximately 16.5%, down from its March 11, 2021 closing price of $17.71 to a March 12, 2021 close of $14.78. 

Then, on March 17, 2021, after trading had closed, Lordstown held an earnings call on which the defendants disclosed that Lordstown had received an inquiry from the U.S. Securities and Exchange Commission (“SEC”).  Although Lordstown also issued a press release and a Form 8-K announcing its fourth quarter and full year 2020 financial results after trading closed on March 17, 2021, Lordstown failed to disclose the existence of the SEC inquiry in those filings.  Following this news, Lordstown’s stock price fell approximately another 9% in aftermarket trading. 

Finally, on March 24, 2021, during the trading day, Hindenburg Research published additional pictures of the Endurance EV truck after it broke down and had to be loaded onto a tow truck during the filming of a commercial that had been aired just days prior to the common stock of Lordstown being taken public via its combination with DiamondPeak. Following this news Lordstown’s stock price fell another $1.21 per share.

The complaint alleges that, throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (1) Lordstown’s purported pre-orders were non-binding; (2) 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 the Endurance; (3) Lordstown is not and has not been “on track” to commence production of the Endurance in September 2021; (4) the first test run of the Endurance led to the vehicle bursting into flames within 10 minutes; and (5) as a result, Lordstown’s public statements were materially false and misleading at all relevant times.

If you are a member of the class described above, you may no later than May 17, 2021 move the Court to serve as lead plaintiff of the class, if you so choose.


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 Adrienne Bell, Esq. (484) 270-1435; toll-free at (844) 887-9500; 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.

Please complete this form relating to your transactions for Lordstown Motors Corp. (NASDAQ: RIDE; RIDEW), f/k/a DiamondPeak Holdings Corp. (NASDAQ: DPHC) securities between August 3, 2020 and March 24, 2021, inclusive (the “Class Period”).

You may also contact James Maro, Esq. (484) 270-1453 or Adrienne Bell, Esq. (484) 270-1435; or toll free at (844) 887-9500; or you may submit your information via email at info@ktmc.com; or you may click here to print a PDF of this form.

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Did you purchase shares of Lordstown Motors Corp. - RIDE; RIDEW f/k/a DiamondPeak Holdings Corp. - DPHC prior to the Class Period?
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The submission of this form does not create an attorney-client relationship, nor an obligation on the part of Kessler Topaz or you to file a lead plaintiff motion in this matter. Any information you submit will be maintained as confidential. If Kessler Topaz, in its sole discretion, believes that you might be an appropriate lead plaintiff candidate, Kessler Topaz will contact you to discuss the matter and whether to establish an attorney client relationship. By signing this form you are authorizing us to contact you regarding this case and/or future cases.
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