The Justice Department is investigating Lordstown Motors, in line with The Wall Street Journal. It’s unclear what the DOJ is inspecting, however the US Attorney’s workplace main the investigation typically handles fraud allegations. At the second, Lordstown can be the topic of an SEC inquiry into claims the corporate made about pre-orders for its upcoming Endurance electrical pickup truck. In each cases, the startup says it’s working with investigators.
“Lordstown Motors is committed to cooperating with any regulatory or governmental investigations and inquiries,” a spokesperson for the corporate advised The Verge. “We look forward to closing this chapter so that our new leadership – and entire dedicated team – can focus solely on producing the first and best full-size all-electric pickup truck, the Lordstown Endurance.”
Lordstown was one in every of a number of EV startups that went public final 12 months via what’s often known as a particular acquisitions firm or SPAC. The maneuver helped the corporate increase $675 million, however it has been embattled ever since. Its issues began in March when Hindenburg Research revealed a report accusing the corporate of deceptive buyers concerning the demand for its Endurance truck. In a later SEC submitting, the corporate warned it didn’t manage to pay for to start out manufacturing its first EV. With at this time’s information, it additionally turns into the second high-profile electrical automobile startup to come back underneath scrutiny from each the DOJ and SEC.
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