Securities and Exchange Commission files $45M claim against Lordstown Motors

The U.S. Securities and Exchange Commission is making a $45 million claim against bankrupt Lordstown Motors.

According to a document filed with the SEC, the claim is linked to possible violations of federal securities laws by the company that planned to produce the all-electric Endurance pickup truck at the former GM Assembly plant in Lordstown.

The SEC began an investigation in March 2021 after Lordstown Motors merged with DiamondPeak Holdings.

SEC investigators sought information about a report by Hindenburg Research which claimed the company made misstatements about the demand for the Endurance pickup truck.

Following an in-house investigation of the claims, Lordstown Motors Chief Executive Officer Steve Burns and Chief Financial Officer Julio Rodriquez resigned from the company.

In October, the bankruptcy court permitted Lordstown Motors to sell some of its assets to Burns, who had filed the motion to purchase those assets, worth a total of $10,200,000, during the ongoing bankruptcy proceedings of LMC.

The regulatory filing states that Lordstown Motors is in discussions with the SEC to resolve potential claims.

If a resolution with the SEC is not reached, Lordstown Motors notes in the filing that any recovery by the SEC will reduce recoveries sought by the company's stockholders.

A Wednesday afternoon hearing is scheduled in bankruptcy court regarding several matters.