PIC, PIC.U, PIC WS, and XL INVESTOR UPDATE: Glancy Prongay & Murray LLP Appointed Lead Counsel in Securities Class Action Against XL Fleet Corp. f/k/a Pivotal Investment Corporation II
Glancy Prongay & Murray LLP ("GPM") announces that it has been appointed Lead Counsel in the securities class action against XL Fleet Corp. ("XL Fleet" or the "Company") (NYSE: XL) f/k/a Pivotal Investment Corporation II ("Pivotal") (NYSE: PIC, PIC.U, and PIC WS) and certain executive officers of the Company, currently pending in the United States District Court for the Southern District of New York.
Investors that purchased XL Fleet or Pivotal securities between October 2, 2020 and March 2, 2021 are encouraged to contact Garth Spencer, Esq. of GPM at 310-201-9150 to discuss the status of the case and the claims in the litigation.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that XL Fleet's salespeople were pressured to inflate their sales pipelines to boost the Company's reported sales and backlog; (2) that at least 18 of the 33 customers that XL featured were inactive and had not placed an order since 2019; (3) that XL's technology had been materially overstated and offered only 5% to 10% of fleet savings; (4) that XL lacks te supply chain and engineers to roll out new products on the announced timelines; and (5) that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On March 3, 2021, Muddy Waters Research published a report entitled "XL Fleet Corp. (NYSE: XL): More SPAC Trash," alleging, among other things, that salespeople "were pressured to inflate their sales pipelines materially in order to mislead XL's board and investors" and that "customer reorder rates are in reality quite low" due to "poor performance and regulatory issues." Citing interviews with former employees, the report alleged that "at least 18 of 33 customers XL featured were inactive." Muddy Waters also claimed that XL has "weak technology" and that "XL's announcement of future class 7-8 upfits seems highly promotional" because the task is "too technologically complex for XL engineers to deliver on the promised timeline."
On this news, the Company's stock price fell $2.09, or 13%, to close at $13.86 per share on March 3, 2021, on unusually heavy trading volume. The share price continued to decline by $2.69, or 19.4%, over two consecutive trading sessions to close at $11.17 per share on March 5, 2021, on unusually heavy trading volume.
If you purchased XL Fleet or Pivotal securities between October 2, 2020 and March 2, 2021, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Garth Spencer, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to firstname.lastname@example.org, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
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