SAN FRANCISCO, CA / ACCESSWIRE / June 10, 2021 / Hagens Berman urges Romeo Power, Inc. (NYSE:RMO) investors with significant losses to submit your losses now. A securities class action has been filed and certain investors may have valuable claims.
Class Period: Oct. 5, 2020 - Mar. 30, 2021
Lead Plaintiff Deadline: June 15, 2021
Contact An Attorney Now: [email protected]
Romeo Power, Inc. (NYSE:RMO) Securities Fraud Action:
The complaint centers on Romeo's misrepresentations and omissions concerning its access to battery cells, a key component of the company's battery modules and packs.
During the class period, Romeo emphasized the company's 4 key battery cell supply partners, which in turn eliminated supply chain risks and support its lofty revenue projections ($11 million for 2020 and $140 million for 2021). The company repeatedly assured investors it had sufficient long-term contracts to supply enough battery cells even in the face of the tight supply.
But the truth emerged on Mar. 30, 2021, when Romeo released a dismal outlook for 2021, reducing its 2021 guided revenues by a whopping 71% - 81%, claiming the shortfall stemmed from a shortage of battery cells. On an earnings call later that same day, management elaborated on the supply constraint, admitting that Romeo depended on just 2 (not 4, as previously touted) battery cell suppliers.
In response to this news, Romeo shares declined $2.04 per share, or almost 20%, in a single trading day.
Most recently, on May 13, 2021, the company announced just $1.045 million revenues for Q1 2021. This was a 58% drop from Q1 2020 and a tiny fraction of the $18 - $40 million 2021 revenue guidance given on Mar. 30, 2021. Management noted the company is still looking for battery cell suppliers.
"We're focused on investors' losses and proving Romeo concealed supply chain risks," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a Romeo Power investor and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Romeo Power should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
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SOURCE: Hagens Berman Sobol Shapiro LLP