© 2021 WKSU
Public Radio News for Northeast Ohio
Play Live Radio
Next Up:
0:00
0:00
Available On Air Stations
Economy

Lawsuit Claims Lordstown Motors Defrauded Investors

The electric Endurance pick-up truck at Lordstown Motors Corporation, in Lordstown, Ohio on June 25, 2020.
Tony Dejak
/
AP
The electric Endurance pick-up truck at Lordstown Motors Corporation, in Lordstown, Ohio on June 25, 2020.

A shareholder lawsuit has been filed against Lordstown Motors, the electric truck startup located in GM's old assembly plant in Lordstown. The suit claims the company has defrauded investors.

The federal lawsuit filed Thursday in Youngstown claims Lordstown Motors Corp. has misled investors about the number of trucks that have been pre-ordered and when production will begin at the massive assembly plant the company bought from General Motors in 2019.

Plaintiff Matthew Rico seeks to have the lawsuit certified as a class-action complaint. One of the company's first prototypes caught fire in January 10 minutes into its initial test drive.

A company spokesperson didn't not respond to an emailed request for comment.

Copyright 2021 WOSU 89.7 NPR News.