QuantumScape (QS) $47.5M Investor Settlement
QuantumScape (QS) has agreed to settle $47.5M with investors to resolve claims for overstating the quality of their battery technology.
Outline
Back in 2020, the news reported significant flaws in QuantumScape's battery technology, including charge time, and temperature range capabilities. Following this, $QS dropped and the company faced a lawsuit from investors.
Timeline
On January 4, 2021: Seeking Alpha published an article titled "QuantumScape’s Solid-State Batteries Have Significant Challenges".
After this news, on the same day, $QS dropped by 40.84%.
On January 5, 2021: QuantumScape faced a lawsuit from investors for overestimating the state of their battery’s technology.
Background
In 2020, QuantumScape announced advancements in its battery technology, including battery life, charge time, and scalability. The company stated that the batteries were “faster than either conventional battery or alternative solid-state approaches are capable of delivering”.
Despite these claims, on January 4, 2021, an article titled "QuantumScape’s Solid-State Batteries Have Significant Challenges" was published on Seeking Alpha.
They pointed out that the battery’s power and lifespan were exaggerated and that the batteries were unlikely to properly work in electric vehicles.
On the same day, following the publication of this article, $QS fell by 40.84%.
After that, in 2021, QuantumScape was sued by shareholders who claimed the company misled them about the true capabilities and prospects of its battery technology.
What can investors expect now?
QuantumScape (QS) has agreed to settle $47.5M with investors to resolve claims for overstating the quality of their battery technology.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Frequently Asked Questions
All persons who purchased or otherwise acquired QuantumScape securities between November 27, 2020 and April 14, 2021, inclusive.
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.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
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 $0.47 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $1.88 per share.
If you're eligible, you can file your claim directly from this case page by clicking the "Collect Payout" button.
More than 100 companies are currently paying out settlements. Connect your brokerage account to automatically check which ones you may have missed — or file manually for this case.
11thestate is an investor recovery company, we help investors to track and collect securities class action settlements. We will:
Prepare documents for your payout
Audit the claim and make sure you get the maximum possible payout
File a claim with the settlement administration
Correspond with the settlement administration to resolve emerging issues
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.