The electric electric electric vehicles for Lion Electric Lion face a collective event by shareholders who claim that the company has learned investors and distorted its financial health, which led to artificial inflation worth securities.
“Money damage suffered by members of the planned group is a direct and immediate result of false and deceptive representations, omission and breach of continuous information obligations of the defendants,” the court document said on Friday.
The proposed collective event, which Lion Electric, whose headquarters is in Saint-Jérôme, has hidden facts and details about its book book and its production capacities for investors. Among the members of the collective event are those invested in the company since May 7, 2021 and 15 December 2024.
“Until December 2024, the whole truth is known to the market, so there has been no further artificial inflation of the value of electrical lion securities that can be attributed to the accused’s misconduct”, “the document indicates.
With a debt of $ 500 million, Lion Electrique received the protection of its creditors in December, looking for a buyer with a restructuring plan that would focus only on pupils and bring all production in Quebec. At the beginning of this month, the High Court in Quebec expanded the protection of the company from its creditors to 4 April and the company’s offers must be submitted until 7 March.
The shareholders claim that the alleged steps of the company have led to huge financial losses for them and added that when the problems with the electric lion became public, the actions lost 96 % of its value for scholarships in Toronto and Toronto, and New York.
Patrick Gervis, Electric Lion spokesman, said no comments on Monday by e -mail that no comments would be made due to legal proceedings. The accusation of collective proceedings has not been verified and the prosecution has not yet been allowed.
People appointed in the efforts of 101 pages include administrators, managers, independent listeners such as accountant, placer on behalf of the company.
The persecution claims that when the company entered the stock market, the lion managers introduced a positive view of the company’s productivity and profitability.
“Lion Electric’s management always repeats that the production rate is increasing, that the company’s customers are satisfied, that the book’s book is still increasing and that the electric LV is on the way of profitability. Overall, the dream of electric lion is in the process of becoming a reality, ”it is possible to read in persecution.
The company appreciated agreements with customers such as Amazon, National Canadian (CN) and IKEA. Some companies, such as Molson Coors and Agropur, never had any purchase agreement with LIV, but their logos appeared at investors’ presentations until May 2022 and were removed without explanation.
Former employees in the ensemble say the vehicles were defective and did not meet the expectations of customers. “Access to the production of electric trucks did not reflect the market rate and did not compare with the book for electric lion control and the area of installation of electric lion has far exceeded its needs and has not been maximized,” suggests prosecution.
The complaint also states quarterly financial results and annual results between 2021 and 2024. This means that investors have started to read the company’s difficulties in May 2023. The company’s book would decrease and the supply fell, affecting income, growth and liquidity.
“During this period, the titles of the electric lion fell, because artificial inflation caused by the misconducts of the defendants dispersed from the value of the company’s securities, causing real economic losses to the members of the group they assume» to read.
The main complainant in the collective event is Adam Mulhall, a member of the Invest Lion Group, representing investors.
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