Fisker faces class action lawsuit alleging securities fraud By Investing.com

© Reuters.

LOS ANGELES – Electric vehicle manufacturer Fisker Inc. (NYSE:) is currently facing a class action lawsuit alleging securities fraud against investors who acquired its stock between August 4 and November 20, 2023. Concerns have been raised from both investors and regulators.

The company’s problems began to surface publicly on October 27, 2023, when its Chief Accounting Officer (CFO) unexpectedly left the company. These executive departures signaled potential internal problems within the company’s finance department.

The problem grew worse when Fisker reported third-quarter earnings on November 13-14. Not only did this result in a failure to achieve revenue expectations, but it also revealed internal control issues that delayed report submission. These disclosures caused Fisker’s stock price to fall significantly, reflecting investor anxiety.

The situation worsened on November 21-22 when Fisker received a non-compliance notice from the New York Stock Exchange (NYSE) due to late quarterly filings. This notice further undermined investor confidence and resulted in a further decline in the company’s stock price.

The class action lawsuit, announced Nov. 8-9, alleges that Fisker violated the Securities Exchange Act of 1934. The suit is currently seeking lead plaintiff, with a filing deadline set for January 26, 2024. This legal action represents a consolidation of investors. There are complaints and serious challenges to Fisker’s corporate governance practices.

Investors are closely monitoring the developments in this case. That’s because the results could have a significant impact on Fisker’s financial health and its position in the competitive electric vehicle market.

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