According to the Complaint, Faraday Future Intelligent Electric Inc. purports to design and engineer next-generation smart electric connected vehicles.
Property Solutions Acquisition Corp. ("PSAC") was a special purpose acquisition company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses.
On January 28, 2021, PSAC and FF Intelligent Mobility Global Holdings Ltd. announced that they had entered into a definitive agreement for a business combination, and that the combined company would be renamed Faraday Future Intelligent Electric Inc. (the “Business Combination”).
The Complaint 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, the Complaint alleges Defendants failed to disclose to investors: (1) that the Company had assets in China frozen by courts, (2) that a significant percentage of its deposits for future deliveries were attributable to a single undisclosed affiliate; (3) that the Company’s cars were not as close to production as the Company claimed; (4) that, as a result of previously issued statements that were misleading and/or inaccurate, Faraday Future could not timely file its quarterly report; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On March 7, 2022, the Court issued an Order appointing Lead Plaintiffs and Co-Lead Counsel. Lead Plaintiffs filed an amended Complaint on May 6. Defendants filed a Motion to Dismiss the amended Complaint on July 5. On October 20, the Court issued an Order granting in part and denying in part Defendants' Motion to Dismiss. Plaintiffs were given leave to amend the Complaint.
On March 1, 2023, Lead Plaintiffs voluntarily dismissed four of the individual Defendants.
The parties entered into a Stipulation of Settlement on October 5, 2023. The Court granted preliminary approval of the Settlement on November 7.