According to reports, the Justice Department is investigating Lordstown Motor Company Wall Street JournalIt is unclear what the DOJ is reviewing, but the US Attorney’s Office, which leads the investigation, often handles fraud allegations. Currently, Lordstown is also the subject of an SEC investigation, which investigated the company’s statement about its upcoming pre-orders. Endurance electric pickup truckIn both cases, the startup said it was cooperating with investigators.
“Lordstown Motors is committed to cooperating with any regulatory or government investigations and inquiries,” a company spokesperson told edge“We look forward to ending this chapter so that our new leadership-and the entire dedicated team-can focus on producing the first and best full-size all-electric pickup truck, Lordstown Endurance.”
Lordstown is one of several electric vehicle startups that went public through special acquisition companies or SPACs last year. The move helped the company raise $675 million, but it has been in trouble ever since.Its problem started in March, when Hindenburg Research A report was published accusing the company of misleading investors in the demand for its Endurance trucks.Later U.S. Securities and Exchange Commission filing, The company warned that it did not have enough funds to start manufacturing its first electric car.With today’s news, it has also become the second high-profile electric vehicle startup DOJ and SEC review.
All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you purchase goods through one of these links, we may earn member commissions.