Lordstown Investigation Begins
July 19, 2021—The investigation into EV startup Lordstown Motors has begun, Reuters reported.
Federal prosecutors in Manhattan are leading the probe into the manufacturer’s pre-orders and its merger with DiamondPeak Holdings.
The U.S. Securities and Exchange Commission had earlier asked the electric pickup truck maker to produce documents and information related to its merger and pre-orders.
In March, shares of the company slumped after investment research firm Hindenburg Research said Lordstown had misled consumers and investors about pre-orders worth $1.4 billion for its Endurance truck.
An internal investigation into Hindenburg's claims in June acknowledged that Lordstown had overstated the quality of pre-orders for its electric trucks.