NEW YORK–(BUSINESS WIRE)–$RMO–The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired Romeo Power, Inc. (“Romeo” or the “Company”) (NYSE: RMO) securities during the period from October 5, 2020 through March 30, 2021 (the “Class Period”). Investors have until June 15, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On March 30, 2021, Romeo issued a press release announcing its financial and operating results for the fourth quarter of 2020. With respect to its 2021 outlook, citing “supply constraints” and “the significant shortfall in battery cell capacity industrywide,” Romeo advised investors that it “now expects its revenue for 2021 to be in the range of $18-40 million”—significantly lower than analyst expectations. On this news, Romeo’s stock price declined by $2.04 per share, or 19.67%, to close at $8.33 per share on March 31, 2021.
The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and failed to disclose that: (1) it was suffering from an acute shortage of high-quality battery cells, which are key raw materials for Romeo’s battery packs and modules, due to supply constraints. Contrary to Defendants’ representations, (2) Romeo had only two battery cell suppliers, not four, (3) the future potential risks that Defendants warned of concerning supply disruption or shortage had already occurred and were already negatively affecting Romeo’s business, operations and prospects, (4) Romeo did not have the battery cell inventory to accommodate end-user demand and ramp up production in 2021, (5) Romeo’s supply constraint was a material hindrance to Romeo’s revenue growth, and (6) Romeo’s supply chain for battery cells was not hedged, but in fact, was totally at risk and beholden to just two battery cell suppliers and the spot market for their 2021 inventory.
If you acquired Romeo securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney at 212-371-6600, by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, and whistleblower litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney’s website: www.kmllp.com.
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