SAN FRANCISCO, April 07, 2021 (GLOBE NEWSWIRE) — Hagens Berman urges Canoo Inc. f/k/a Hennessy Capital Acquisition Corp. IV (NASDAQ:GOEV) investors with significant losses to submit your losses now. A securities fraud class action has been filed and certain investors may have valuable claims.
Canoo Inc. (NASDAQ:GOEV) Securities Fraud Class Action:
The complaint alleges Canoo misled investors before and after going public through a SPAC closing on Dec. 21, 2020.
Specifically, Defendants repeatedly touted a three-pronged strategy to generate revenue and growth: (i) an engineering services segment; (ii) the sales of subscriptions of vehicles to consumers; and (iii) the sale of vehicles to other businesses. Canoo also emphasized its agreements with established OEMs, including with Hyundai for the co-development of a future EV platform.
In truth, defendants concealed that Canoo (1) had decreased its focus on its plan to sell vehicles to consumers through a subscription model; (2) would de-emphasize its engineering services business; and (3) did not have partnerships with OEMs and no longer engaged in the previously announced partnership with Hyundai.
On Mar. 29, 2021, the truth emerged when Canoo abruptly announced its CFO was being replaced, that it would deemphasize its engineering services business, would no longer focus on subscription sales to consumers, and try to make and sell its own vehicles to commercial operators. Moreover, on a call with investors, Canoo’s Chairman characterized senior management’s statements concerning the company’s partnerships as “aggressive” and that “they weren’t at our standard of representation to the public markets.”
In response to this news, analyst Roth Capital downgraded the company’s shares from buy to neutral buy and slashed its price target, and the price of Canoo shares crashed.
“We’re focused on investors’ losses and proving defendants intentionally misrepresented the viability of Canoo’s business model and business partnerships,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a Canoo investor and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Canoo 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. For more information, call Reed Kathrein at 844-916-0895 or email GOEV@hbsslaw.com.
About Hagens Berman
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Reed Kathrein, 844-916-0895