LOS ANGELES, May 10, 2021 /PRNewswire/ -- The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Arcimoto, Inc. ("Arcimoto" or the "Company") (NASDAQ: FUV) securities between February 14, 2018 and March 22, 2021, inclusive (the "Class Period"). Arcimoto investors have until June 18, 2021 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On March 23, 2021, Bonitas Research published a report alleging that Arcimoto had delivered "less than 5%" of the pre-orders it had touted since 2018 and that the Company's largest customer is secretly owned and operated by an undisclosed related party, FOD Capital, LLC. Moreover, the report alleged that one day before Arcimoto touted a 90-day trial for first responder units in Orlando, the Company had filed a total production recall notice "due to safety issues with the electronic drivers in the vehicles which can 'lead to unexpected battery shutdown and immediate loss of traction-power.'"
On this news, the Company's stock price fell $1.10 per share, or approximately 6.56%, to close at $15.67 per share on March 23, 2021.
The complaint filed alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the preorders of Arcimotos Fun Utility Vehicles (FUVs) were fabricated or never completed, with only 19 units delivered out of an alleged preorder of 422; (2) Arcimoto failed to disclose to customers that nearly 100% of its vehicles delivered were under safety recall; (3) Arcimotos largest customer, R-Key-Moto, was an undisclosed related party owned by insider FOD Capital, LLC; and (4) Arcimotos partnership with HULA was an undisclosed related party transaction; (5) as a result, Defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased Arcimoto securities during the Class Period, you may move the Court no later than June 18, 2021 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Arcimoto securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to email@example.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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SOURCE The Law Offices of Frank R. Cruz, Los Angeles