FOR IMMEDIATE RELEASE:
NEW YORK, May 6, 2021 – Cohen Milstein Sellers & Toll PLLC is investigating Canoo, Inc. (NASDAQ: GOEV) (“Canoo” or the “Company”) following the filing of class action lawsuits alleging violations of federal securities law.
If you purchased Canoo shares between August 18, 2020 and March 29, 2021 (the “Class Period”) and suffered an economic loss, you may wish to contact Cohen Milstein Partner Michael Eisenkraft at (212) 838-7797 or firstname.lastname@example.org to discuss your legal rights and options.
To serve as lead plaintiff, you must file a motion with the court by June 1, 2021. You are not required to file a lead plaintiff motion to take part in the litigation.
Several lawsuits alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by Canoo and certain of the Company’s officers and directors were filed in the U.S. District Court for the Central District of California.
Canoo was formed by a merger between Canoo Holdings Ltd. (“Canoo Holdings”), an electric vehicle company, and Hennesy Capital Acquisition Corp. IV (“Hennesy Capital”), a publicly traded special purpose acquisition company (“SPAC”), formed for the purpose of effecting a business combination with a privately held company. Hennesy Capital was incorporated on August 6, 2018 and conducted its initial public offering in March 2019. Canoo Holdings became a public company when it merged with Hennesy Capital on December 21, 2020 to create Canoo.
The complaints allege that defendants made false and misleading statements and/or failed to disclose that: (1) Canoo, which had touted its “unique business model,” would significantly reduce its focus on selling vehicles to consumers via a subscription-based model; (2) the Company’s engineering services business was not viable; (3) contrary to prior statements, Canoo did not have partnerships with original equipment manufacturers and had ended a previously announced partnership with Hyundai, and (4) as a result of the foregoing, defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
The truth emerged on March 29, 2021, when Canoo announced on an earnings call that it would de-emphasize both its subscription services and contract engineering businesses and that its CFO had resigned. A news article published the same day revealed that Canoo no longer had an engineering services partnership with Hyundai. On this news, Canoo shares fell $2.50 per share, or 21.2%, from $11.80 per share on March 29, 2021 to $9.30 per share on March 30, 2021.
Cohen Milstein encourages investors who purchased or otherwise acquired Canoo shares or options from August 18, 2020 through March 29, 2021 or former employees with information about this matter to contact us prior to the June 1, 2021 lead plaintiff deadline.
A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your share in any recovery will not be enhanced or diminished by whether you decide to serve as a lead plaintiff. Any member of the proposed class may retain Cohen Milstein or other attorneys to serve as your counsel in this action or may do nothing and remain an absent class member.
Cohen Milstein has significant experience representing investors in securities class actions, having acted as lead counsel in hundreds of cases and recovered billions of dollars for plaintiffs since 1969. With more than 100 attorneys in offices in Washington, D.C., New York City, Chicago, Philadelphia, Palm Beach Gardens, Fla., and Raleigh, N.C., the firm is active in major litigation pending in federal and state courts throughout the nation. For more information visit www.cohenmilstein.com.
If you have any questions about this notice, the action, or your rights, please contact:
Michael B. Eisenkraft, Esq.
Cohen Milstein Sellers & Toll PLLC
88 Pine Street, 14th Floor
New York, NY 10005
Telephone: (888) 240-0775 or (212) 838-7797
Prior results do not guarantee a similar outcome. This may be considered Attorney Advertising.
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