SAN DIEGO, CA & VERNON, CA / ACCESSWIRE / August 23, 2021 / Shareholder rights law firm Robbins LLP is investigating whether certain officers and directors of Romeo Power, Inc. (NYSE: RMO, RMO.WT) violated the Securities Exchange Act of 1934 or breached their fiduciary duty to the Company. Romeo purports to be an industry leading energy technology company focused on designing and manufacturing lithium-ion battery modules and packs for commercial electric vehicles.
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Romeo Power, Inc. (RMO, RMO.WT) Misrepresented its Ability to Meet Demand
According to a class action complaint filed against Romeo, Romeo and key executives represented that the Company estimated revenue of $11 million for 2020 and $140 million for 2021. Defendants further represented that Romeo had "key partnerships" with LG Chem, Samsung, Murata and SK Innovation, which manufacture battery cells, a key component in Romeo's battery modules and packs, and that they were supplying Romeo with battery cells. Finally, defendants represented that Romeo has the capacity and supply to meet end-user demand for its products and that Romeo was not beholden "to any level of the value chain," that its supply was hedged, and that it did not see any material challenges that would hamper growth.
On March 30, 2021, Romeo issued a press release and filed a report with the SEC that disclosed its financial results for the quarter and year ended December 31, 2020. Romeo shocked investors by disclosing that its production had been hampered by a shortage in supply of battery cells and that its estimated 2021 revenue would therefore be reduced by approximately 71-87%. During a conference call the same day, Romeo revealed that it had only two battery suppliers, not four as previously represented. Then, on March 31, 2021, Morgan Stanley downgraded Romeo's target price from $12 to $7 per share. On this news, Romeo shares declined almost 20%, to close at $8.33 per share. The stock price has yet to recover.
Romeo Power, Inc. (RMO, RMO.WT) shareholders have options. If you would like more information regarding your rights, please contact Lauren Levi at (800) 350-6003 or [email protected], or via our Shareholder Information Form.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
Contact us to learn more:
Lauren Levi
(800) 350-6003
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CONTACT:
Lauren Levi
Robbins LLP
5040 Shoreham Place
San Diego, CA 92122
[email protected]
(800) 350-6003
SOURCE: Robbins LLP