Fisker faces class action lawsuit over alleged false financial statements By Investing.com
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NEW YORK – Fisker Inc. (NYSE:), an electric vehicle manufacturer, is currently facing a class action lawsuit over accusations of having provided misleading financial statements to investors, which has led to significant shareholder losses. The Gross Law Firm has announced a deadline of January 26, 2024, for shareholders to join as lead plaintiffs in the lawsuit, which targets those who purchased shares between August 4 and November 20, 2023.
The legal challenge comes in the wake of a series of events that raised concerns about Fisker’s financial reporting integrity. On November 8, Fisker delayed its third-quarter earnings release following the departure of Chief Accounting Officer John Finnucan on October 27. Florus Beuting assumed the role on November 6. By November 13, the company reported a substantial $91 million loss for the third quarter, with no production forecasts available due to admitted weaknesses in reporting that delayed filings with the Securities and Exchange Commission (SEC).
Further complicating matters, The Wall Street Journal reported between November 20 and 22 that another accounting officer resigned after the Q3 disclosure. Fisker did not announce this departure until a November 22 filing revealed misrecorded expenses amounting to approximately $20 million and inventory adjustments that increased the net loss by $4 million. Following these disclosures, Fisker’s stock prices fell sharply.
Attorney Reed Kathrein has called on shareholders who have suffered severe losses or possess inside knowledge to come forward, emphasizing SEC whistleblower rewards for exposing corporate wrongdoing. This advocacy underscores the importance of upholding plaintiffs’ rights and ensuring corporate accountability.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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© Reuters.
NEW YORK – Fisker Inc. (NYSE:), an electric vehicle manufacturer, is currently facing a class action lawsuit over accusations of having provided misleading financial statements to investors, which has led to significant shareholder losses. The Gross Law Firm has announced a deadline of January 26, 2024, for shareholders to join as lead plaintiffs in the lawsuit, which targets those who purchased shares between August 4 and November 20, 2023.
The legal challenge comes in the wake of a series of events that raised concerns about Fisker’s financial reporting integrity. On November 8, Fisker delayed its third-quarter earnings release following the departure of Chief Accounting Officer John Finnucan on October 27. Florus Beuting assumed the role on November 6. By November 13, the company reported a substantial $91 million loss for the third quarter, with no production forecasts available due to admitted weaknesses in reporting that delayed filings with the Securities and Exchange Commission (SEC).
Further complicating matters, The Wall Street Journal reported between November 20 and 22 that another accounting officer resigned after the Q3 disclosure. Fisker did not announce this departure until a November 22 filing revealed misrecorded expenses amounting to approximately $20 million and inventory adjustments that increased the net loss by $4 million. Following these disclosures, Fisker’s stock prices fell sharply.
Attorney Reed Kathrein has called on shareholders who have suffered severe losses or possess inside knowledge to come forward, emphasizing SEC whistleblower rewards for exposing corporate wrongdoing. This advocacy underscores the importance of upholding plaintiffs’ rights and ensuring corporate accountability.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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