Former Lordstown Motors execs ask judge to end investor lawsuit

YOUNGSTOWN - A group of former executives from Lordstown Motors Corp. is asking a federal judge to dismiss a lawsuit accusing them of misleading investors. The executives argue the lawsuit, which claims they made false statements about the company's electric pickup truck, doesn't have enough legal support.
The lawsuit, which combines several individual complaints, focuses on statements made by Lordstown Motors and its leaders about how many pre-orders they had for the all-electric Endurance pickup truck and when they expected to start making it. Those named in the motion to dismiss include Stephen Burns, the company's founder and former CEO, along with Julio Rodriguez, Caimin Flannery, Shane Brown, Rich Schmidt, and Darren Post.
The executives' motion claims that those suing haven't shown enough specific evidence to prove their case under federal securities laws. They say Lordstown Motors consistently told investors that the pre-orders were not guaranteed sales and that production timelines were just estimates. The executives also argue that a critical report from a now-defunct "short-seller" Hindenburg Research — a company that profits when a stock's price falls — did not reveal any new, hidden information that would have caused the company's stock price to drop.
The Hindenburg report alleged that Lordstown Motors had no sellable product and misled investors on both the demand for the Endurance and production capabilities.
The former GM Assembly plant in Lordstown, which once housed Lordstown Motors, has since been taken over by electronics and global technology provider Foxconn.