COMPANY |
Canoo Inc. |
COURT |
United States District Court for the Central District of California |
CASE NUMBER |
21.02873 |
JUDGE |
The Honorable Fernando M. Olguin |
CLASS PERIOD |
August 18, 2020 - March 29, 2021 |
SECURITY TYPE |
All Securities |
Case Background:
Canoo Holdings Ltd. (“Canoo Holdings”) was an electric vehicle company that touted a “unique business model that defies traditional ownership to put customers first.” It announced a delivery vehicle (to launch in 2022), pickup truck (to launch in 2023), and van, all of which are built on the same underlying technological platform. Hennessy Capital was a special purpose acquisition company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination. On or about December 21, 2020, Canoo Holdings became a public entity via merger with Hennessy Capital, with the surviving entity named Canoo Inc.
The complaint alleges that, throughout the Class Period, the Defendants failed to disclose to investors that: (1) Canoo had decreased its focus on its plan to sell vehicles to consumers through a subscription model; (2) Canoo would deemphasize its engineering services business; (3) contrary to prior statements, Canoo did not have partnerships with original equipment manufacturers and no longer engaged in the previously announced partnership with Hyundai; and (4) as a result of the foregoing, the Defendants’ positive statements about Canoo’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
Current Status of Case:
On November 20, 2023, Defendants filed a Motion to Dismiss the complaint. Lead Plaintiff filed an Opposition to Defendants’ Motion to Dismiss the complaint on January 4, 2024. This action is ongoing.
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