NEW YORK, April 08, 2021 (GLOBE NEWSWIRE) -- Lowey Dannenberg P.C., a preeminent law firm in obtaining redress for consumers and investors, is investigating claims of violations of federal securities laws on behalf of investors of Workhorse Group Inc. (“Workhorse” or the “Company”) (NASDAQ: WKHS).
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.
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 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.
If you are a shareholder of Workhorse who purchased Workhorse securities between July 7, 2020 and February 23, 2021, inclusive, you have until May 7, 2021 to ask the Court to appoint you as Lead Plaintiff for the class. To participate, learn more, or discuss the issues surrounding the investigation, please contact our attorneys at (914) 733-7256 or via email at email@example.com.
Whistleblowers: Persons with non-public information regarding Workhorse should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC.
About Lowey Dannenberg
Lowey Dannenberg is a national firm representing institutional and individual investors, who suffered financial losses resulting from corporate fraud and malfeasance in violation of federal securities and antitrust laws. The firm has significant experience in prosecuting multi-million-dollar lawsuits and has previously recovered billions of dollars on behalf of investors.
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