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ZEV.US
id: 1231

Lightning eMotors (ZEV) Investor Settlement

$13,350,000
Cash Settlement
D. Colorado
Court
1:21-cv-02774
Case number
05/18/2020
Class period Start
08/16/2021
Class period End
11/11/2024
Claim deadline

Lightning eMotors has reached an $13.35M settlement agreement with $ZEV investors to settle claims of overstating financial prospects in 2021.

Case Details:

On August 16, 2021, Lightning eMotors reported a Q2 2021 net loss of $0.79 per share, up from $0.10 per share in Q2 2020.

Later, Lightning eMotors also withdrew its 2021 financial guidance right after announcing a multi-year deal with Forest River.

On this news, $ZEV fell by 16.93% on August 17, 2021.

Based on all these events, Lightning eMotors was accused of the following points:

  • Lightning eMotors had a much higher net loss per share in Q2 2021 than in Q2 2020 and withdrew its 2021 guidance.

  • It also overstated its financial health and prospects.

Lightning eMotors has reached an $13.35M settlement agreement with $ZEV investors to settle claims of overstating financial prospects in 2021.

Case Type
US Securities Class Action
Case Status
Claim Submission Closed
Alleged Offence
Mismanagement, 
Misleading Statements, 
Omissions
Suspected Party
Directors, 
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
1.69
Filing date
10/15/2021
Plaintiffs
David P. Sarro
Attorneys
Johnson Fistel, LLP (Marietta, GA), Robbins Geller Rudman & Dowd LLP (San Diego, CA)
Defendants
Timothy Richard Reeser, Teresa P. Covington, Neil Miotto, Brad Weightman, John J. Mikulsky, Andrea Betti-Berutto, Peter Wang, Robert Fenwick-Smith
Judge
Regina M. Rodriguez
Administrator
Gilardi & Co LLC
Settlement agreement date
2024-07-01
Court hearing date
11/19/2024
Exclusion deadline
10/18/2024
Objection deadline
10/18/2024
Hearing deadline
10/18/2024
Attorney fee
$4,674,555
Trades matching type
FIFO

Frequently Asked Questions

Who is eligible for this settlement?

All persons and entities who: (i) purchased or otherwise acquired publicly traded securities issued pursuant to GigCapital3, Inc.’s Form S-1 Registration Statement declared effective on May 5, 2020; (ii) were stockholders of GigCapital3 as of March 15, 2021 and entitled to vote on the proposed transaction to acquire Lightning Systems; or (iii) purchased or otherwise acquired Lightning eMotors Securities between May 18, 2020 and August 16, 2021, inclusive, and were damaged thereby; or (iv) were record and beneficial holders of GigCapital3 common stock from March 15, 2021 through May 6, 2021, inclusive.

Do I have to sell securities to be eligible?

No, if you have purchased securities within the class period, you are eligible to participate.

You can participate in the settlement and retain (or sell) your securities.

How much will my payment be?

The final payout amount depends on your specific trades and the number of investors participating in the settlement.

If 100% of investors file their claims - the average payout will be $1.69 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $6.76 per share.

How long does the payout process take?

The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.

What is 11thestate?

11thestate is an investor recovery company, we help investors to track and collect securities class action settlements. We will:

  1. Prepare documents for your payout

  2. Audit the claim and make sure you get the maximum possible payout

  3. File a claim with the settlement administration

  4. Correspond with the settlement administration to resolve emerging issues

  5. Deliver payout directly to your brokerage account

There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.