SAN FRANCISCO, May 1, 2021 (GLOBE NEWSWIRE) – Hagens Berman calls on XL Fleet Corp. (NYSE: XL) Investors with significant losses can file their losses now. A class action lawsuit for securities fraud has been filed and certain investors may have valuable claims.
XL Fleet Corp. Class-Action Lawsuit Against Securities Fraud (NYSE: XL):
The complaint alleges that: (1) XL’s sales pipelines were significantly inflated; (2) XL has grossly overrated its customer base; (3) XL’s technology was significantly overrated and did not provide customers with the cost savings shown. and (4) that XL does not have the supply chain and engineers to introduce new products within the announced deadlines.
The truth emerged on March 3, 2021 when analyst Muddy Waters released a report titled XL “More SPAC Trash”. Based on interviews with former employees, Muddy Waters alleged that salespeople “have been pressured to significantly inflate their sales pipelines” and that “customer reorder rates are actually quite low due to” poor performance and regulatory issues. “In the report also alleged that “at least 18 of 33 customers XL introduced were inactive.” Muddy Waters also alleged that XL has “weak technology” and that “the announcement of future Class 7-8 upits by XL appears very promotional ”, since the task“ is too technologically complex for XL engineers to keep to the promised schedule ”.
Then, on March 4, 2021, after XL issued a rejection, Muddy Waters criticized XL’s “wildcard response” and tweeted, “We spoke to a fleet manager for one of the companies that XL is bragging about in its response. He said MPG only gains ~ 10%, not 25%. He said driving on the freeway didn’t help. His company also bought at a deep discount. Say. The. Truth.”
In response, the company’s stock price fell $ 5.55, or 33%, over three trading days.
Then, on March 10, 2021, after XL issued a more detailed answer, Muddy Waters released another report stating that XL did not deny important allegations, including (1) its inflated pipeline, (2) overrated customer base, and ( 3)) low reorder rates for customers.
Finally, on March 31, 2021, XL announced that its fourth quarter and fiscal 2020 financial results missed consensus expectations for the fourth quarter by nearly 10%. In addition, XL forecast revenue of just $ 1 million for the first quarter of 2021, or just over 90% less than the fourth quarter of 2020, and only 1% of the total revenue of $ 75 million for fiscal 2021 that the company previously posted on Jan. November 2020 forecast. Muddy Waters tweeted during the earnings call: “The Cannacord analyst asked about a 90% first-quarter revenue decline in the first quarter.
In response, the price of XL shares fell sharply in after-hours trading.
“We are focusing on investor losses and proving that XL misled investors by exaggerating the backlog,” said Reed Kathrein, the Hagens Berman partner who led the investigation.
If you are an XL investor and are experiencing significant losses or have knowledge that may aid the company’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblower: Individuals with nonpublic information about XL Fleet should review their options to help with the investigation or to use the SEC’s whistleblower program. Under the new program, whistleblowers who provide original information can receive rewards of up to 30 percent for each successful SEC recovery. Further information is available from Reed Kathrein at 844-916-0895 or send an email to [email protected]
About Hagens Berman
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Reed Kathrein, 844-916-0895