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Lordstown Motors Targeted in Justice Department Probe

» Posted September 10, 2021Resources | Share This Post

Troubled electric vehicle startup Lordstown Motors recently acknowledged that it is being investigated by the Justice Department over allegations of misleading investors.

Federal investigators are looking into the startup’s reported orders and the deal it used to go public, according to CNBC. One question is whether Lordstown inflated its preorder numbers before the company went public last year through a special purpose acquisition company.

Steve Burns, Lordstown’s former chairman and chief executive officer, left the company last year after an internal investigation uncovered “‘issues regarding the accuracy of certain statements’” around Lordstown’s preorders, specifically the seriousness of the orders and who was making them,” CNBC’s Michael Wayland reports.

Shortseller Hindenburg Research has publicly accused the company of using “fake” orders to raise capital to pay for the production of Lordstown’s electric truck model.

Lordstown, based in Ohio, is part of an increasingly crowded field of electric truck makers. Many of those companies are in a race to get funding for their vehicles.

How Shoddy Cars Put Everyone at Risk

Although the allegations against Lordstown are still being investigated, they cannot exactly strike confidence in anyone considering buying an electric truck.

Even the world’s largest manufacturers continue to have a hard time ensuring that their vehicles are actually safe to drive. Millions of cars are recalled around the globe every year for a wide variety of defects that increase the risk of a crash.

Fortunately, the California lemon law offers some important rights and protections to car owners in the Golden State. 

The Song-Beverly Consumer Warranty Act requires car manufacturers to perform a broad range of repairs on vehicles while they are under warranty. The law also forces manufacturers to buy back vehicles that the companies cannot or are unable to fix. That includes compensating the owner for the vehicle’s purchase price, as well as financing fees and other, related costs.

A manufacturer can instead offer to replace the vehicle, but it is up to the owner to decide whether to accept or reject this arrangement. Because there is no set number of repair requests or attempts that must be made before the buyback or replace requirement kicks in, it is important to seek the advice of an experienced lemon law lawyer.

How a Los Angeles Lemon Law Attorney Can Help

If you are a car owner who has been stuck with a lemon or is haggling with a manufacturer over repairs, an experienced Los Angeles lemon law attorney at Bickel Sannipoli APC can provide vital assistance. We will help you understand your rights and options and navigate the legal process.

Our firm has represented hundreds of clients in defective vehicle cases in L.A. and across the state. We help the people we represent fight back by holding manufacturers accountable.

Our offices are conveniently located in L.A., San Diego and San Francisco. Call us at (888) 800-1983 or contact us online to speak with a Los Angeles lemon law attorney.

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"I was blown away at how fast the settlement wrapped up. I was told about 8 months to a year for success, but Brian Wagner and his supporting team did a fantastic job, perhaps 6 months ahead of schedule. From my initial consultation with Erika, her assessment of my case, including the assigning of Mr. Wagner as counsel, the stress reducing assurance of paralegal Andy Kim, and the personable approach of Melanie, who eased my anxiety with her confidence and support in reception of my calls. Great job team!!! Thank you, thank you, thank you!"
Posted By: Sean S