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MULN.US
id: 1406
Mullen Automotive (MULN) Stock Manipulation and Fraud Case
C.D. California
Court2:25-cv-01187
Case number02/03/2023
Class period Start03/13/2025
Class period End04/14/2025
Lead Plaintiff motion deadline- $MULN investors filed a lawsuit against Mullen Automotive, claiming the company misled shareholders by falsely promoting partnerships, exaggerating its technology, and manipulating its stock.
- Between April 2023 and April 2024, $MULN dropped 99% due to the company’s repeated reverse stock splits and misleading claims about its technology and partnerships.
Case Details:
Between February 3, 2023, and March 13, 2025, Mullen misled investors about its business deals, technology, and financial stability while engaging in stock manipulation.
In April 2023, the company falsely claimed to have secured a $263 million contract with Randy Marion Automotive, but no formal agreement existed.
Mullen also promoted a joint venture with Global EV Technology, boasting of breakthrough battery technology while failing to disclose that its partner, CEO Lawrence Hardge, had a history of securities fraud. The deal collapsed after reports exposed false claims, leading government agencies to pull out.
To stay listed on Nasdaq, Mullen repeatedly conducted reverse stock splits, including a 1-for-25 split on May 4, 2023, a 1-for-9 split on August 11, 2023, and a 1-for-100 split on August 14, 2023. These moves temporarily boosted stock prices while allowing the company to issue more shares, leading to massive dilution.
By April 2024, $MULN had lost over 99% of its value.
Mullen also hid financial deals with Esousa Holdings, run by Michael Wachs, who had been convicted of bank fraud and banned from financial services.
Based on these events, $MULN investors filed a lawsuit against Mullen Automotive, claiming the company:
- It inflated its stock price through multiple reverse stock splits and secret financial deals with questionable entities.
- It misled investors by falsely claiming major contracts, exaggerating its technology, and hiding key partner backgrounds.
Investors believe Mullen misled them about its financial stability, business operations, and partnerships.
Case Status
Lead Plaintiff Submission
Alleged Offence
Mismanagement,
Misleading Statements,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
02/16/2025
Filing date
02/12/2025
Lead Plaintiff Deadline
04/14/2025