RADNOR, Pa., March 12, 2021 (GLOBE NEWSWIRE) — The law firm of Kessler Topaz Meltzer & Check, LLP announces that a securities fraud class action lawsuit has been filed in the United States District Court for the Central District of California against Workhorse Group Inc. (NASDAQ: WKHS) (“Workhorse”) on behalf of those who purchased or acquired Workhorse securities between July 7, 2020 and February 23, 2021, inclusive (the “Class Period”).
Deadline Reminder: Investors who purchased or acquired Workhorse securities during the Class Period may, no later than May 7, 2021, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation 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; via e-mail at [email protected]; or click https://www.ktmc.com/workhorse-group-class-action-lawsuit?utm_source=PR&utm_medium=link&utm_campaign=workhorse
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 Class Period commences on July 7, 2020, when Workhorse Chief Financial Officer, Steve Schrader, granted an interview to a staff writer at Benzinga, a financial news publication. The interview appeared in print on the Benzinga website. When asked how Workhorse separates itself from the competition generally, Mr. Schrader responded by explaining why Workhorse trucks were advantageous for “postal services.” The complaint alleges that throughout the Class Period, the defendants continued to indicate that Workhorse would secure the NGDV contract.
However, 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. Following this news, Workhorse’s stock price fell $14.88 per share, or 47%, to close at $16.47 per share in the regular session on February 23, 2021. The stock price continued to drop in after-hours trading and opened on February 24, 2021 at a price of $14.07, a fall of over 50% from the previous open.
The complaint alleges that, throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (1) Workhorse was merely hoping that USPS was going to select an electric vehicle as its NGDV, and had no assurance or indication from USPS that this was the case; (2) Workhorse 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 (3) as a result, the defendants’ public statements were materially false and/or misleading at all relevant times.
Workhorse investors may, no later than May 7, 2021, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a 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 affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check, LLP is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
(844) 887-9500 (toll free)