Lordstown Motors' CEO and CFO Resign After Board Concludes Pre-Orders Were Exaggerated
Embattled electric-pickup start-up Lordstown Motors (NASDAQ: RIDE) said today that its CEO Steve Burns and CFO Julio Rodriguez have resigned, after a report by the company's independent directors concluded that some of Lordstown's statements about its pre-orders were inaccurate.
A committee formed by Lordstown's independent directors examined allegations made by short-seller Hindenburg Research in March. The report concluded that while several of Hindenburg's allegations were without merit, the firm's most explosive allegations -- that Lordstown had exaggerated the number of pre-orders for its pickup, and that some of those pre-orders may have been made by small companies that don't operate fleets -- were valid.
The news is the latest in a series of developments that have shaken auto investors' confidence in the start-up, which is still hoping to begin deliveries of its electric truck to commercial-fleet customers this fall.
Source Fool.com
