NEW YORK, April 06, 2021 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Canoo Inc. (NASDAQ: GOEV; NASDAQ: GOEVW) in the United States District Court for the Central District of California on behalf of those who purchased or acquired the securities of Canoo between August 18, 2020 and March 29, 2021, inclusive (the “Class Period”). The lawsuit seeks to recover damages for investors under the federal securities laws.
The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (i) Canoo had decreased its focus on its plan to sell vehicles to consumers through a subscription model; (ii) Canoo would deemphasize its engineering services business; (iii) contrary to prior statements, Canoo did not have partnerships with original equipment manufacturers and no longer engaged in the previously-announced partnership with Hyundai; and (iv) as a result of the foregoing, Defendants’ positive statements about Canoo’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis. On March 29, 2021, Canoo revealed that Canoo would no longer focus on its engineering services line, which had been touted in the SPAC merger documents just three months earlier and formed the basis of Canoo’s growth story. On this news, Canoo’s stock price fell more than 21.19%, damaging investors.
Investors who purchased or otherwise acquired shares of Canoo during the Class Period should contact the Firm prior to the June 1, 2021 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
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