LORDSTOWN, Ohio - Allegations of insider stock trading made against some Lordstown Motors executives have not discouraged some investors.

Shares of LMC’s RIDE stock went from a low of $6.70 last Thursday to a high of $8.95 on Monday, closing the day at $8.40 per share, representing a nearly 15% increase in value from Friday’s close.

The increase came on the same day as the startup manufacturer of all-electric pickup trucks announced plans to invite investors, analysts, and customers to a week-long event at its Lordstown headquarters in late June.

It also came on the same day as an investment advisor, FNY Managed Accounts made a pitch in federal court to become the lead plaintiff in class action lawsuits against Lordstown Motors.

“As detailed in the expansive complaint filed by FNY —the only complaint to allege insider trading claims under Section 20A of the Exchange Act —the Actions involve an admitted fraudulent scheme that ultimately cost investors hundreds of millions of dollars in losses,” according to a Memorandum of Law supporting FNY as lead plaintiff filed in U.S. District Court.

FNY’s complaint, one of six class actions filed against LMC, characterizes President Rich Schmidt, CFO Julio Rodriguez, Chief Production Officer Shane Brown, and Chief Engineer Darren Post as “company insiders.”

FNY alleges that in early February, the four men “unloaded” nearly a quarter-of-a-million shares of RIDE stock worth $8.6 million. At the time the shares were sold, they ranged in value from $24.63 to $27.21.

The complaint states that by selling their shares “while in possession of material nonpublic information and prior to the revelation of the truth, these Defendants avoided losses of approximately $5,754,861 based on Lordstown's $11.38 per share stock price at the end of the Class Period”.

As of Tuesday, Lordstown Motor’s public relations firm has not responded to 21 News’ requests for a response to FNY’s complaint.  In the past, LMC CEO Steve Burns has said the company would “vigorously” defend against the lawsuits and pledged to cooperate with the SEC investigation.

In addition to posting the news release about the June event at the Lordstown plant, LMC also announced it was delaying Monday’s planned first-quarter earnings report by one week until Monday, May 24, 2021.