San Francisco, Calif. – (Newsfile Corp. – May 2, 2021) – Hagens Berman calls on XL Fleet Corp. investors. (NYSE: XL) with Significant Losses, strongly urges you to file your losses now. A class action lawsuit for securities fraud has been filed and certain investors may have valuable claims.
Teaching time: October 2, 2020 – March 2, 2021
Lead plaintiff deadline: May 7, 2021
Contact an attorney now: XL@hbsslaw.com
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 outlined. and (4) that XL does not have the supply chain and engineers to introduce new products within the advertised 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 claimed 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 “. The report also claimed that “at least 18 out of 33 customers XL presented were inactive”. Muddy Waters also claimed that XL has “weak technology” and that “XL’s announcement of future Class 7-8 upfits looks very promotional” because the task is “too technologically complex for XL engineers to meet 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 XL brags about in its response. He said, MPG only gain ~ 10%, not 25%. He said it didn’t help driving the freeway. His company also bought at a deep discount. Tell me. The. Truth. “
The story goes on
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 noting that XL failed to 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%. Additionally, XL projected 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 company’s total revenue of $ 75 million for the 2021 fiscal year that the company made had previously forecast on November 12, 2020. 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 over-the-counter trading.
“We’re 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.
Whistleblowers: Individuals with nonpublic information about XL Fleet should review their options to help with the investigation or use the SEC whistleblower program. Under the new program, whistleblowers who provide original information can receive rewards of up to 30 percent for each successful SEC recovery. For more information, call Reed Kathrein at 844-916-0895 or send an email to XL@hbsslaw.com.
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About Hagens Berman
Hagens Berman is a national law firm with eight offices in eight cities across the country and over eighty attorneys. The firm represents investors, whistleblowers, employees and consumers in complex legal disputes. More information about the company and its achievements can be found at hbsslaw.com. For the latest news, visit our newsroom or follow us on Twitter @classactionlaw.
Reed Kathrein, 844-916-0895
The source version of this press release can be found at https://www.newsfilecorp.com/release/82604