Consolidated class action claims brought by investors in Lightning eMotors for allegedly overstating the company’s financial position should be dismissed with leave to amend, a federal magistrate said.
Investors sued the electric vehicle manufacturer and three executives. The suit also names GigCapital3, a SPAC backed by Avi S. Katz, and related entities and individuals.
The judge also said there was no showing of false or materially misleading statements, Bloomberg reported.
Lightning eMotors was acquired by Gig in May 2021, one of a wave of e-vehicle industry companies taken public through blank-check mergers.
The plaintiffs allege the defendants overstated the company’s financial position after it went public through the SPAC deal.
Lightning eMotors completed its deal with the SPAC in May 2021, receiving approximately $268 million in gross proceeds, including a $125 million PIPE.
Shares at the time of the company’s debut on the NYSE were trading at $172.80. Ligtning eMotors has since plunged into penny-stock territory, last trading this afternoon at 7 cents a share. Read more.
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