Workhorse (WKHS) Securities Litigation $35M Settlement
Workhorse (WKHS) agreed to pay $35 million to settle a securities class action lawsuit to avoid further litigation.
$15,000,000 is to be provided in cash and the remainder is to be paid in the form of shares of Workhorse common stock.
The complaint against Workhorse and its Leaders alleged that they made false and misleading statements or failed to disclose important information, including:
the lack of assurance from the United States Postal Service (USPS) that the company would be selected for the Next Generation Delivery Vehicle project,
the concealment of the impractical and expensive nature of electrifying the entire USPS fleet, and
that the statements about the company's business, operations, and prospects were materially false and misleading and lacked a reasonable basis.