Troubles at the electric truck company Lordstown Motors are casting a harsh light on David Hamamoto, the former Goldman Sachs executive whose SPAC helped take it public, The New York Times reports.
The Justice Department is probing the embattled startup, coming on the heels of an SEC investigation, and the abrupt resignation last month of two key executives.
Lordstown merged last year with SPAC DiamondPeak Holdings in a deal valued at $1.6 billion.
The DOJ inquiry into Lordstown Motors is being handled by the U.S. attorney’s office in Manhattan and is in early stages. A spokesman for Lordstown Motors has said the company is committed to cooperating with any investigations and inquiries and looks forward to focusing on production with its new leadership team.
The SEC first requested information from Lordstown Motors in February and has issued subpoenas regarding Lordstown Motors’ move last year to become a public company and its representations about preorders, according to company filings. Lordstown Motors has said it is cooperating with the SEC’s investigation. Read more.
