NEW YORK, June 08, 2021 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Arcimoto Inc. (“Arcimoto” or the “Company”)(NASDAQ: FUV) and certain of its officers. The class action, filed in the United States District Court for the Eastern District of New York, and docketed under 21-cv-02870, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired the publicly traded securities of Arcimoto between February 14, 2018 and March 22, 2021, both dates 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 Arcimoto securities during the Class Period, you have until June 18, 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 firstname.lastname@example.org 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.
Arcimoto is purportedly engaged in the business of manufacturing ultra-efficient three-wheeled electric vehicles. The Company’s products include the Fun Utility Vehicle (“FUV”).
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 preorders of Arcimoto’s FUVs were fabricated or never completed, with only 19 units delivered out of an alleged preorder of 422; (ii) Arcimoto failed to disclose to customers that nearly 100% of its vehicles delivered were under safety recall; (iii) Arcimoto’s largest customer, R-Key-Moto, was an undisclosed related party owned by insider FOD Capital, LLC; (iv) Arcimoto’s partnership with HULA was an undisclosed related party transaction; and (v) as a result, defendants’ public statements were materially false and/or misleading at all relevant times.
On March 23, 2021, Bonitas Research (“Bonitas”) published a short-seller report addressing Arcimoto. In the report, Bonitas alleged that Arcimoto fabricated pre-orders to generate fake demand, only delivered on 19 of the 422 alleged pre-orders since 2018, sold 13 of these 19 pre-orders to an undisclosed related party, and failed to notify customers that Arcimoto had filed a total production recall notice with the the National Highway Traffic Safety Administration.
Following publication of the Bonitas report, Arcimoto’s stock price fell $1.10 per share, or approximately 6.56%, to close at $15.67 per share on March 23, 2021.
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