Romeo Power, Inc. Class Action Reminder: Kessler Topaz Meltzer & Check, LLP Reminds Shareholders of Deadline in Securities Fraud Class Action Lawsuit
RADNOR, Pa., May 28, 2021 /PRNewswire/ -- The law firm of Kessler Topaz Meltzer & Check, LLP reminds Romeo Power, Inc. ("Romeo") (NYSE: RMO) (NYSE: RMO.WT) f/k/a RMG Acquisition Corp. ("RMG") (NYSE: RMG) (NYSE: RMG.U) (NYSE: RMG.WS) investors that a securities fraud class action lawsuit has been filed on behalf of those who purchased or acquired Romeo securities between October 5, 2020 and March 30, 2021, inclusive (the "Class Period").
Investor Deadline Reminder: Investors who purchased or acquired Romeo securities during the Class Period may, no later than June 15, 2021, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453 or Adrienne Bell, Esq. (484) 270-1435; toll free at (844) 887-9500; via e-mail at [email protected]; or click https://www.ktmc.com/romeo-powerclass-action-lawsuit?utm_source=PR&utm_medium=Link&utm_campaign=romeo
Romeo is an energy technology company focused on designing and manufacturing lithium-ion battery modules and packs for commercial electric vehicles. RMG, a special purpose acquisition company, or SPAC, was formed for the purpose of entering into a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses in the diversified resources and industrial materials sectors. On October 5, 2020, RMG announced a definitive agreement for a business combination with Romeo. On December 29, 2020, Romeo announced that it completed its business combination with RMG. The business combination was approved by RMG stockholders in a special meeting held on December 28, 2020 and consummated on December 29, 2020.
During the Class Period, the defendants represented that for 2020 Romeo estimated revenue of $11 million, and for 2021 Romeo estimated revenue of $140 million. The defendants further represented that Romeo had the capacity and supply to meet end-user demand for Romeo's products, that Romeo was not beholden "to any level of the value chain", that its supply was hedged, and that it did not see any material challenges that would hamper growth.
The truth was revealed on March 30, 2021 when, after the market closed, Romeo issued a press release and filed a report with the U.S. Securities and Exchange Commission on a Form 8-K that disclosed its financial results for the quarter and year ended December 31, 2020, and conducted a conference call with investors and analysts. The defendants shocked investors by disclosing that Romeo's production had been hampered by a shortage in supply of battery cells and that its estimated 2021 revenue would therefore be reduced by approximately 71-87%. On March 31, 2021, Morgan Stanley issued a research report in which it downgraded Romeo's target price per share from $12 to $7. Following this news, Romeo shares declined from a closing price on March 30, 2021 of $10.37 per share to close at $8.33 per share, a decline of $2.04 per share, or almost 20%.
The complaint alleges that throughout the Class Period, the defendants concealed that: (1) Romeo had only two battery cell suppliers, not four; (2) the future potential risks that the defendants warned of concerning supply disruption or shortage had already occurred and were already negatively affecting Romeo's business, operations and prospects; (3) Romeo did not have the battery cell inventory to accommodate end-user demand and ramp up production in 2021; (4) Romeo's supply constraint was a material hindrance to Romeo's revenue growth; and (5) Romeo's supply chain for battery cells was not hedged, but in fact, was totally at risk and beholden to just two battery cell suppliers and the spot market for their 2021 inventory.
Romeo investors may, no later than June 15, 2021, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check, LLP is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.
CONTACT:
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
(844) 887-9500 (toll free)
[email protected]
SOURCE Kessler Topaz Meltzer & Check, LLP
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