XL Fleet Corp (XL) 19.5M Investor Settlement
XL Fleet Corp (XL) agreed to settle 19.5 million with investors to end claims related to overstating its financial success in the SPAC deal.
Outline
Back in 2021, Muddy Waters Research reported that XL Fleet exaggerated its expected sales by including inactive customers and overstated the performance of its hybrid and plug-in hybrid electric drive systems. Following this, $XL significantly fell, and XL Fleet faced a lawsuit from investors.
Timeline
On December 22, 2020: XL Hybrids and Pivotal merged and formed XL Fleet.
On March 3, 2021: Muddy Waters Research published a report titled “XL Fleet: More SPAC Trash”.
On March 5, 2021: Following this report, $XL fell by 19.4%.
On March 8, 2021: The $XL stockholder sued XL Fleet for overstating its financial success in the SPAC deal.
Background
On December 22, 2020, XL Hybrids and Pivotal merged and formed XL Fleet. The company stated that “due to strong year-to-date results, XL remains on track to deliver on its full year 2020 revenue forecast of approximately $21 million” expecting a “revenue forecast of $75 million for the fiscal year 2021”.
The company also highlighted its growing number of customers and partners, and that “XL Fleet’s hybrid electric drive system has been proven to significantly improve fuel economy while reducing greenhouse gas emissions”.
Despite these claims, on March 3, 2021, Muddy Waters Research reported that XL Fleet overstated its expected sales, reporting inactive customers and overstating how well its hybrid and plug-in hybrid systems worked.
Muddy Waters reported that these systems often provided only 5-10% fuel savings instead of the claimed 25-50% and faced significant performance and regulatory issues.
According to the report, XL has “weak technology” and future class uplifts are not guaranteed because the task is “too technologically complex for XL engineers to deliver on the promised timeline.”
Following this report, on March 5, $XL dropped by 19.4%.
On March 8, 2021, stockholders sued XL Fleet and its executives, claiming they misled investors about the company's actual technology and business situation to get the merger approved.
What can investors expect now?
XL Fleet Corp (XL) agreed to settle 19.5 million with investors to end claims related to overstating its financial success in the SPAC deal.
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 the publicly traded common stock, units, and/or warrants of XL Fleet or Pivotal, purchased or otherwise acquired publicly traded XL Fleet or Pivotal call options, and/or wrote publicly traded XL Fleet or Pivotal put options between September 18, 2020 and March 31, 2021, both dates inclusive, and were damaged thereby.
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 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 $0.41 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $1.64 per share.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
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.