RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased XL Fleet Corp. ("XL Fleet" or the "Company") (NYSE: XL) securities during the period from October 2, 2020 through March 2, 2021, inclusive (the “Class Period”).
XL Fleet shareholders may, no later than May 7, 2021, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of XL Fleet and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.
The XL Fleet class action lawsuit alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) XL Fleet’s salespeople were pressured to inflate their sales pipelines to boost XL Fleet’s reported sales and backlog; (ii) at least 18 of the 33 customers that XL Fleet featured were inactive and had not placed an order since 2019; (iii) XL Fleet’s technology had been materially overstated and offered only 5% to 10% of fleet savings; (iv) XL Fleet lacked the supply chain and engineers to roll out new products on the announced timelines; and (v) as a result of the foregoing, defendants’ positive statements about XL Fleet’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On March 3, 2021, Muddy Waters Research published a report entitled "XL Fleet Corp. (NYSE: XL): More SPAC Trash," alleging, among other things, that salespeople "were pressured to inflate their sales pipelines materially in order to mislead XL [Fleet]’s board and investors" and that "customer reorder rates are in reality quite low" due to "poor performance and regulatory issues." Citing interviews with former employees, the report alleged that "at least 18 of 33 customers XL [Fleet] featured were inactive." Muddy Waters also claimed that XL Fleet has "weak technology" and that "XL’s announcement of future Class 7-8 upfits seems highly promotional" because the task is "too technologically complex for XL [Fleet] engineers to deliver on the promised timeline." On this news, XL Fleet’s share price fell approximately 13%, damaging investors.
If you are a member of the class, you may, no later than May 7, 2021, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.