The DOJ is investigating troubled EV startup Lordstown Motors
Lordstown was one of a number of EV start-ups that went public in 2015 through what’s called a special acquisitions business or SPAC. The maneuver helped the business raise $675 million, however it has actually been embattled since. Its problems began in March when Hindenburg Research published a report accusing the company of deceptive investors about the need for its Endurance truck. In a later SEC filing, the company alerted it didn’t have sufficient money to start manufacturing its first EV. With today’s news, it likewise becomes the second prominent electric car start-up to come under scrutiny from both the DOJ and SEC.
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“Lordstown Motors is devoted to complying with any governmental or regulative queries and examinations,” a spokesperson for the business informed The Verge. “We look forward to closing this chapter so that our new management– and whole dedicated group– can focus exclusively on producing the very first and best full-size all-electric pickup, the Lordstown Endurance.”
Lordstown was one of numerous EV start-ups that went public last year through what’s known as a special acquisitions business or SPAC., the business warned it didn’t have sufficient money to begin manufacturing its very first EV. All items advised by Engadget are selected by our editorial group, independent of our parent business.
The Justice Department is examining Lordstown Motors, according to The Wall Street Journal. It’s unclear what the DOJ is examining, but the US Attorney’s office leading the examination typically manages fraud accusations. At the minute, Lordstown is likewise the topic of an SEC inquiry into claims the company made about pre-orders for its upcoming Endurance electric pickup. In both circumstances, the startup says it’s dealing with private investigators.