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NEW YORK, NY / ACCESSWIRE / June 15, 2021 / Bronstein, Gewirtz & Grossman, LLC informs investors that a class action lawsuit has been filed against Romeo Power, Inc. (“Romeo” or “the Company”) (NYSE: RMO), formerly known as RMG Acquisition Corp. (“RMG”) (NYSE: RMG) and certain of its officers, on behalf of shareholders who purchased or otherwise acquired Romeo securities between October 2, 2020 and March 30, 2021, both dates inclusive (the “Period from appeal â€). These investors are encouraged to join this case by visiting the company’s website: www.bgandg.com/rmo.
This class action lawsuit seeks to recover damages against the defendants for alleged violations of federal securities laws under the Securities Exchange Act of 1934.
On March 30, 2021, Romeo issued a press release announcing its financial and operational results for the fourth quarter of 2020. Regarding its outlook for 2021, citing “supply constraints” and “the significant deficit in cell capacity battery life across the industry, â€Romeo advised. investors who “now expect its revenues for 2021 to be between $ 18 million and $ 40 million,” which is significantly lower than analysts’ expectations. At this news, Romeo’s stock price fell $ 2.04 per share, or 19.67%, to close at $ 8.33 per share on March 31, 2021.
The complaint alleges that throughout the period of the action, the defendants made materially false and / or misleading statements and failed to disclose that: (1) he suffered from an acute shortage of high quality battery cells, which are essential raw materials for Romeo batteries and modules, due to supply constraints. Contrary to the Defendants’ statements, (2) Romeo only had two suppliers of battery cells, not four, (3) the potential future risks that the Defendants had warned regarding a supply disruption or shortage had already arisen. products and were already negatively affecting Romeo’s business, operations and outlook, (4) Romeo did not have the stock of battery cells to meet end-user demand and increase production in 2021, (5) the constraint of Romeo’s supply was a major obstacle to Romeo’s revenue growth and (6) Romeo’s supply chain for battery cells was not covered, but in fact was totally at risk and owed only two battery cell suppliers and the spot market for their 2021 inventory.
A class action has already been filed. If you would like to review a copy of the complaint, you can visit the firm’s website: www.bgandg.com/rmo or you can contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you have suffered harm in Romeo, you have until June 15, 2021 to ask the Tribunal to appoint you as the principal plaintiff. Your ability to participate in any recovery does not require you to serve as the principal applicant.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our main expertise is the aggressive pursuit of contentious claims on behalf of our clients. In addition to representing institutions and other plaintiff investors in security class actions, the firm’s expertise includes general corporate and commercial litigation, as well as securities arbitration. Lawyer advertising. Past results do not guarantee similar results.
Contact:
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | info@bgandg.com
SOURCE: Bronstein, Gewirtz and Grossman, LLC
See the source version on accesswire.com:
https://www.accesswire.com/650161/Final-Deadline-Alert-to-Actively-Participate-in-Romeo-Power-Inc-RMO-Class-Action–Bronstein-Gewirtz-Grossman-LLC
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