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Kessler Topaz Meltzer & Check, LLP Law Firm reminded Romeo Power, Inc. (“Romeo”) (NYSE stock code:RMO, RMO.WT)) f / k / a RMG Acquisition Corp. (“RMG”) (New York Stock Exchange stock code:RMG, RMG.U, RMG.WS)) The investor has filed a securities fraud class action on behalf of the person who purchased or acquired Romeo Securities October 5, 2020 to March 30, 2021, Included (“Class Hours”).
Investor deadline reminder: Investors who buy or acquire Romeo Securities Yes during class, No later than June 15, 2021, Seeking to be appointed as the chief plaintiff representative of the collective. For more information or to learn how to participate in this lawsuit, please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453 or Adrienne Bell, Esq. (484) 270-1435; Toll free (844) 887-9500; Via e-mail info@ktmc.com; or Click on https://www.ktmc.com/romeo-powerclass-action-lawsuit?utm_source=PR&utm_medium=Link&utm_campaign=romeo
Romeo is an energy technology company that specializes in the design and manufacture of lithium-ion battery modules and battery packs for commercial electric vehicles. RMG is a special purpose acquisition company, or SPAC, established for the purpose of mergers, equity transactions, asset acquisitions, stock purchases, reorganizations or similar business combinations with one or more companies in the field of diversified resources and industrial materials. 2020 On October 5th, RMG announced a final business merger agreement with Romeo. On December 29, 2020, Romeo announced the completion of the business merger with RMG. The business combination was approved by RMG shareholders at a special meeting held on December 28, 2020, and was completed on December 29, 2020.
During the class action, the defendant stated that Romeo’s estimated income in 2020 was 11 million U.S. dollars, and Romeo’s estimated income in 2021 was 140 million U.S. dollars. The defendant further stated that Romeo has the ability and supply to meet end-user demand for Romeo products. Romeo is not affected by “any level of the value chain”, its supply is hedged, and it does not see any material challenges that hinder growth.
The truth was revealed on March 30, 2021. After the market closed, Romeo issued a press release and submitted a Form 8-K report to the U.S. Securities and Exchange Commission, disclosing the quarterly and annual financial results as of December. Results March 31, 2020, and held a conference call with investors and analysts. The defendant disclosed that Romeo’s production was hampered by the shortage of battery supply, so it expected that its revenue in 2021 would decrease by about 71-87%, which shocked investors. On March 31, 2021, Morgan Stanley released a research report, lowering Romeo’s target price per share from US$12 to US$7. After the news, Romeo’s stock price fell from the closing price of US$10.37 per share on March 30, 2021 to US$8.33 per share, a decrease of US$2.04 per share, a drop of nearly 20%.
The complaint stated that during the entire class action, the defendant concealed: (1) Romeo had only two battery suppliers instead of four; (2) The potential future risk of supply interruption or shortage that the defendant warned had already occurred and had Romeo’s business, operations and prospects have a negative impact; (3) Romeo has no battery cell inventory to meet end-user needs and increase production in 2021; (4) Romeo’s limited supply is a substantial obstacle to Romeo’s revenue growth; (5) ) Romeo’s battery cell supply chain is not hedged, but it is actually completely at risk, and is only subject to the two battery cell suppliers and their 2021 inventory spot market.
Romeo Investors may, No later than June 15, 2021, Seek to be appointed as the chief plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other lawyers, or can choose to do nothing and continue to be absent from class members. The lead plaintiff is the representative party who directs the litigation on behalf of all class members. In order to be appointed as the lead plaintiff, the court must determine that the class member’s claim is a typical representative of other class members’ claims, and that the class member will fully represent the class. Your ability to share any recovery is not affected by the decision whether or not to serve as the lead plaintiff.
Kessler Topaz Meltzer & Check, LLP is suing class actions involving securities fraud, breach of fiduciary duties, and other violations of state and federal laws in state and federal courts across the country. Kessler Topaz Meltzer & Check, LLP is the driving force of corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors in the United States and around the world. The company represents investors, consumers, and whistleblowers (private citizens who report fraud against the government and share the recovery of government funds). The complaint in this lawsuit was not filed by Kessler Topaz Meltzer & Check, LLP.For more information about Kessler Topaz Meltzer & Check, LLP, please visit www.ktmc.com.
View the source version on businesswire.com: https://www.businesswire.com/news/home/20210612005002/en/
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