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NEW YORK, May 22, 2021 (GLOBE NEWSWIRE) -- Bernstein Liebhard, a nationally acclaimed investor rights law firm, reminds investors of the deadline to file a lead plaintiff motion in a securities class action lawsuit that has been filed on behalf of investors who purchased or acquired the securities of Canoo Inc., ("Canoo" or the "Company") (NASDAQ: GOEV) from August 18, 2020 through March 29, 2021 (the "Class Period"). The lawsuit filed in the United States District Court for the Central District of California alleges violations of the Securities Exchange Act of 1934.
If you purchased Canoo securities, and/or would like to discuss your legal rights and options please visit Canoo Shareholder Class Action Lawsuit or contact Joseph R. Seidman, Jr. toll free at (877) 779-1414 or Seidman@bernlieb.com
The complaint alleges that during the Class Period, defendants made materially false and/or misleading statements and/or failed to disclose that: (i) an engineering services segment, (ii) the sales of subscriptions to vehicles to consumers, and (iii) the sale of vehicles to other businesses. The complaint alleges that, on March 29, 2021, the Company revealed that it was radically changing its business model by deemphasizing its engineering services business and by no longer focusing on its subscription-based business.
On March 29, 2021, after the markets closed, Canoo issued a press release (“Q4 Release”) reporting its fourth quarter and full year 2020 results. The Q4 Release removed the language touting its “unique business model” simply stating: “Canoo has developed breakthrough electric vehicles that are reinventing the automotive landscape with bold innovations in design and pioneering technologies.”
On the same day the Company held a conference call to discuss its financial results (the “Q4 Call”). During the call Defendant Aquila announced that Defendant Balciunas was being replaced as CFO. The Company’s CEO, Defendant Kranz was not on the call. During the Q4 Call Defendant Aquila revealed that “it was decided by our Board to de-emphasize the originally stated contract engineering services line.”
In response to this news, shares of Canoo fell $2.50 (or 21.2%) from a March 29, 2021 close of $11.80 per share to close at $9.30 per share on March 30, 2021, on heavy volume.
If you wish to serve as lead plaintiff, you must move the Court no later than June 1, 2021. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery does not require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.