Lordstown Motors pays SEC fine for misleading investors, ET Auto

The U.S. Securities and Exchange Commission on Thursday said it has dropped charges against Lordstown Motors Corp that the electric car maker misled investors about sales expectations for its flagship truck, the Endurance.

Lordstown, which filed for bankruptcy in 2023, went public in a merger with a special purpose purchasing company (SPAC) in 2020. The company overstated demand, claiming 100,000 preorders for the truck, and misstated the Endurance delivery schedule, regulators said. in the statement.

Lordstown, which neither accepted nor denied the SEC’s findings, agreed to a cease and desist order.

The SEC ordered the company to disgorge $25.5 million in ill-gotten gains, which the regulator said was satisfied by Lordstown’s payment to settle class-action lawsuits against it. A lawyer for the company did not immediately respond to a request for comment.

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