Shareholder rights law firm Robbins LLP reminds investors that a purchaser of Workhorse Group, Inc. (WKHS) - Get Report filed a class action complaint against the Company and its officers and directors for alleged violations of the Securities Exchange Act of 1934 between July 7, 2020 and February 23, 2021. Workhorse Group develops and manufactures electric delivery vehicles.
If you suffered a loss due to Workhorse Group, Inc.'s misconduct, click here.
Workhorse Group, Inc. (WKHS) Misled Shareholders About Its Ability to Obtain a Delivery Vehicle Contract With the USPS
According to the complaint, Workhorse Group was vying for the USPS's Next Generation Delivery Vehicle project, a competitive multiyear acquisition process for replacing approximately 165,000 package delivery vehicles. The contract was thought to be worth approximately $6.3 billion. During the class period, Workhorse Group touted its potential to obtain the USPS contract, speculated that its all-electric vehicle "is probably the perfect vehicle for them," and noted that the contract "would be transforming for the company."
These statements turned out to be false and/or misleading. Workhorse failed to disclose that: (1) the Company was merely hoping that USPS was going to select an electric vehicle as its Next Generation Delivery Vehicle, and had no assurance or indication from USPS that this was the case; and (2) the Company had concealed the fact that - as revealed by the postmaster general in explaining the ultimate decision not to select an electric vehicle - electrifying the USPS's entire fleet would be impractical and extremely expensive.
The truth was revealed on February 23, 2021, when the USPS announced, "it awarded a 10-year contract to Oshkosh, WI, based Oshkosh Defense, to manufacture a new generation of U.S.-built postal delivery vehicles that will drive the most dramatic modernization of the USPS fleet in three decades." On this news, the price of Workhorse fell $14.88, or 47%, on February 23, 2021, and continued to drop in after-hours trading to open at $14.07 the next day.
If you purchased shares of Workhorse Group, Inc. (WKHS) between July 7, 2020 and February 23, 2021, you have until May 7, 2021, to ask the court to appoint you lead plaintiff for the class.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
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