Feb 29, 2024 - Economy

SEC charges Lordstown Motors with exaggerating demand for its EV pickup

A factory with a big sign saying "ride with Lordstown."

The Lordstown Motors plant in Lordstown, Ohio. Photo: Dustin Franz/Bloomberg via Getty Images

The SEC on Thursday charged the once-ballyhooed startup automaker Lordstown Motors with fibbing about the financial prospects of its EV pickup.

Why it matters: Lordstown was showered with praise when it acquired a shuttered General Motors plant in 2019 and attracted a manufacturing partner in iPhone maker Foxconn.

Driving the news: Lordstown "exaggerated the demand for the Endurance" and "misrepresented the company's timeline for delivering" the vehicle, the SEC alleged in a settled order.

  • The SEC said Lordstown violated certain federal securities laws, including certain antifraud provisions.

The other side: Lordstown did not admit or deny the SEC's findings but agreed to a cease-and-desist order and the disgorgement of $25.5 million.

  • The SEC said it would deem the fine "satisfied" by Lordstown's payment of certain class-action claims.

A Lordstown spokesperson did not immediately respond to a request for comment.

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