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The Law Offices of Frank R. Cruz Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Romeo Power Inc. f/k/a RMG Acquisition Corp. (RMO)

June 11, 2021 GMT

LOS ANGELES--(BUSINESS WIRE)--Jun 11, 2021--

The Law Offices of Frank R. Cruz reminds investors of the upcoming June 15, 2021 deadline to file a lead plaintiff motion in the case filed on behalf of investors who purchased Romeo Power Inc. f/k/a RMG Acquisition Corp. (“Romeo” or the “Company”) (NYSE: RMO ) securities between October 5, 2020 and March 30, 2021, inclusive (the “Class Period”).

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If you are a shareholder who suffered a loss, click here to participate.

On March 30, 2021, Romeo announced that, as a result of a significant supply shortage of battery cells, its fiscal 2021 revenue guidance would be reduced by 71-87%. During a related conference call, the Company revealed that it relied solely on Samsung and LG for its supply of power cells, not four different cell suppliers as Romeo had previously stated.

On this news, the Company’s stock price fell $2.04 per share, or 19.7%, to close at $8.33 per share on March 31, 2021, thereby injuring investors.

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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 that: (1) Romeo Power had only two battery cell suppliers, not four; (2) the future potential risks that defendants warned of concerning supply disruption or shortage had already occurred and were already negatively affecting Romeo Power’s business, operations and business prospects; (3) Romeo Power did not have the battery cell inventory to accommodate end-user demand and ramp up production in 2021; (4) Romeo Power’s supply constraint was a material hindrance to Romeo Power’s revenue growth; and (5) Romeo Power’s supply chain for battery cells was not hedged, but in fact, was totally at risk and beholden to just two battery cell suppliers and the spot market for their 2021 inventory; and (6) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

Follow us for updates on Twitter: twitter.com/FRC_LAW.

If you purchased or otherwise acquired Romeo securities during the Class Period, you may move the Court no later than June 15, 2021 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.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.

View source version on businesswire.com:https://www.businesswire.com/news/home/20210611005004/en/

CONTACT: The Law Offices of Frank R. Cruz, Los Angeles

Frank R. Cruz, 310-914-5007

fcruz@frankcruzlaw.com

www.frankcruzlaw.com

KEYWORD: CALIFORNIA UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: LEGAL PROFESSIONAL SERVICES

SOURCE: The Law Offices of Frank R. Cruz

Copyright Business Wire 2021.

PUB: 06/11/2021 11:30 AM/DISC: 06/11/2021 11:32 AM

http://www.businesswire.com/news/home/20210611005004/en