NEW YORK, NY / ACCESSWIRE / May 14, 2021 / Juan Monteverde, founder and managing partner at Monteverde & Associates PC, a national securities firm rated Top 50 in the 2018-2020 ISS Securities Class Action Services Report and headquartered at the Empire State Building in New York City, announces that a class action lawsuit has been filed in United States District Court, Southern District of New York (Case No. 1:21-cv-03362) against Romeo Power, Inc. (NYSE:RMO) ("Romeo" or the "Company") on behalf of purchasers of the Company's securities between October 5, 2020 through March 30, 2021, inclusive (the "Class Period").
The complaint states that Romeo and its executives violated federal securities law by failing to disclose that: (1) Romeo was suffering from an acute shortage of high-quality battery cells; (2) Romeo had only two battery cell suppliers, not four; (3) Romeo already had a supply disruption or shortage; (4) Romeo did not have the battery cell inventory to accommodate end-user demand and ramp up production in 2021; (5) Romeo's supply constraint was a material hindrance to Romeo's revenue growth; and (6) Romeo's supply chain for battery cells was not hedged, but in fact, was totally at risk and beholden to just two battery cell suppliers and the spot market for their 2021 inventory.
On March 30, 2021, Romeo issued a press release announcing its financial and operating results for the fourth quarter of 2020. With respect to its 2021 outlook, citing "supply constraints" and "the significant shortfall in battery cell capacity industrywide," Romeo advised investors that it "now expects its revenue for 2021 to be in the range of $18-40 million"-significantly lower than analyst expectations. On this news, Romeo's stock price declined by $2.04 per share, or 19.67%, to close at $8.33 per share on March 31, 2021.
Mr. Monteverde would like to personally discuss with you how to potentially recover your monetary losses, if incurred during the Class Period.
If you wish to serve as lead plaintiff, you must move the Court no later than June 15, 2021. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
Click here for more information: https://www.monteverdelaw.com/case/romeo-power-inc. It is free and there is no cost or obligation to you.
About Monteverde & Associates PC
We are a national class action securities litigation law firm that has recovered millions of dollars and is committed to protecting shareholders from corporate wrongdoing. We were listed in the Top 50 in the 2018-2020 ISS Securities Class Action Services Report. Our lawyers have significant experience litigating Mergers & Acquisitions and Securities Class Actions. Mr. Monteverde is recognized by Super Lawyers as a Rising Star in Securities Litigation in 2013, 2017-2019, an award given to less than 2.5% of attorneys in a particular field. He has also been selected by Martindale-Hubbell as a 2017-2020 Top Rated Lawyer. Our firm's recent successes include changing the law in a significant victory that lowered the standard of liability under Section 14(e) of the Exchange Act in the Ninth Circuit. Thereafter, our firm successfully preserved this victory by obtaining dismissal of a writ of certiorari as improvidently granted at the United States Supreme Court. Emulex Corp. v. Varjabedian, 139 S. Ct. 1407 (2019). Also, over the years the firm has recovered or secured over a dozen cash common funds for shareholders in mergers & acquisitions class action cases.
If you owned common stock in RMO during the Class Period and wish to obtain additional information and protect your investments free of charge, please visit our website or contact Juan E. Monteverde, Esq. either via e-mail at [email protected] or by telephone at (212) 971-1341.
Juan E. Monteverde, Esq.
MONTEVERDE & ASSOCIATES PC
The Empire State Building
350 Fifth Ave. Suite 4405
New York, NY 10118
United States of America
Tel: (212) 971-1341
Attorney Advertising. (C) 2021 Monteverde & Associates PC. The law firm responsible for this advertisement is Monteverde & Associates PC (www.monteverdelaw.com). Prior results do not guarantee a similar outcome with respect to any future matter.
SOURCE: Monteverde & Associates PC