NEW YORK, April 6, 2021 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Workhorse Group Inc. ("Workhorse" or the "Company") (NASDAQ: WKHS) and certain of its officers. The class action, filed in the United States District Court for the Central District of California, and docketed under 21-cv-02207, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Workhorse securities between July 7, 2020 and February 23, 2021, inclusive (the "Class Period"). Plaintiff seeks to recover compensable damages caused by Defendants' violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased Workhorse securities during the Class Period, you have until May 7, 2021 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
Workhorse is a technology company engaged in the development and manufacturing of electric delivery vehicles.
In 2016, the United States Postal Service ("USPS") announced the USPS Next Generation Delivery Vehicle ("NGDV") project, a competitive multiyear acquisition process for replacing approximately 165,000 package delivery vehicles.
Workhorse was one of the companies vying for the NGDV contract, which was thought to be worth approximately $6.3 billion.
The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company was merely hoping that the 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; (ii) 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 astronomically expensive; and (iii) as a result, Defendants' public statements were materially false and/or misleading at all relevant times.
On February 23, 2021, while the market was open, the USPS issued a press release entitled "U.S. Postal Service Awards Contract to Launch Multi-Billion-Dollar Modernization of Postal Delivery Vehicle Fleet." The press release announced that Oshkosh Defense, not Workhorse, had won the lucrative NGDV contract.
On this news, securities of Workhorse fell $14.87 per share, or 47%, to close at $16.47 per share in the regular session on February 23, 2021. The price continued to drop in after-hours trading and opened on February 24, 2021 at a price of $14.07 per share, a fall of over 50% from the previous open, damaging investors.
The New York Times published an article on February 24, 2021, entitled "Losing Bid for Postal Contract Proves Costly for Electric-Vehicle Maker." The subtitle read: "Workhorse, a small truck maker with big ambitions, was counting on the deal for a surge in revenue. Its shares lost $2 billion in value." The press release quoted the postmaster general, Louis DeJoy, who said the USPS's plan called for 10 percent of its new trucks to be electric. When asked by Representative Jackie Speier, a California Democrat, why that figure was not 90 percent, Mr. DeJoy pointed to cost, stating: "We don't have the three or four extra billion dollars in our plan right now that it would take to do it[.]"
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
SOURCE Pomerantz LLP