Why Archer Aviation Stock Plummeted Today
Shares of Archer Aviation (NYSE: ACHR) fell on Monday, finishing the day down 10.9%. The drop came as the S 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) both gained modestly.
A judge ruled that a lawsuit against the company, which develops electric vertical takeoff and landing (eVTOL) aircraft, can move forward. At the same time, Stellantis, a major backer of Archer, reported poor preliminary numbers for its upcoming quarter.
When Archer went public, it did so using a special purpose acquisition company (SPAC). A lawsuit by shareholders of the company alleges that Archer, investor Ken Moelis, and other architects of the SPAC merger misrepresented the value of shares and misled shareholders as to how far along the company was in developing its aircraft.
Source Fool.com
