According to the Complaint, Workhorse Group, Inc. is a technology company engaged in the development and manufacturing of electric delivery vehicles.
In 2016, the United States Postal Service (“USPS”) announced the USPS Next Generation Delivery Vehicle (“NGDV”) project, a competitive multiyear acquisition process for replacing approximately 165,000 package delivery vehicles. Workhorse was one of the companies vying for the NGDV contract, which was thought to be worth approximately $6.3 billion.
The Complaint alleges that Defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) the Company was merely hoping that USPS was going to select an electric vehicle as its Next Generation Delivery Vehicle, and had no assurance or indication from USPS that this was the case; (2) the Company had concealed the fact that – as revealed by the postmaster general in explaining the ultimate decision not to select an electric vehicle – electrifying the USPS’s entire fleet would be impractical and astronomically expensive; and (3) as a result, Defendants’ statements about Workhorse’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On May 18, 2021, the Court issued an Order consolidating cases and appointing Lead Plaintiff and Counsel. Lead Plaintiff filed an amended Complaint on July 16. Defendants filed a Motion to Dismiss the amended Complaint on September 3. On December 2, the Court issued an Order partially granting Defendants' Motion to Dismiss. Plaintiff was given leave to amend the Complaint.
On October 28, 2022, the parties notified the Court that they had reached an agreement in principle to settle the case. On January 13, 2023, the parties entered into a Stipulation of Settlement. The Court granted preliminary approval of the Settlement on February 14. On July 28, the Court granted final approval of the Settlement, including an award of Attorneys’ Fees and Expenses, and entered Final Judgment.