The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired Arrival SA (“Arrival” or the “Company”) (NASDAQ:ARVL) common stock from November 18, 2020 through November 19, 2021, inclusive (the “Class Period”). Investors have until February 22, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Arrival is a manufacturer and distributor of commercial electric vehicles (“EVs”), including vans, cars, and buses. Arrival develops vertically integrated technologies and products that create a new approach to the assembly of EVs.
On March 24, 2021, Arrival consummated a business combination (the “Merger”) with CIIG Merger Corp. (“CIIG”). Upon the consummation of the Merger, CIIG changed its name from CIIG to Arrival Vault US Inc.
On November 8, 2021, Arrival announced the Company’s financial results for the third quarter of 2021, including a loss of €26 million (compared to a loss of €22 million during the same quarter a year earlier), and adjusted EBITDA loss for the quarter of €40 million (compared to a loss of €18 million in the third quarter of 2020). The Company also pulled its 2022 revenue goals and significantly scaled back its long-term projections, pushing its production and sales timeline into later time periods. On this news, Arrival’s stock price declined by $4.91 per share, or approximately 27.6%, from $17.79 per share to close at $12.88 per share on November 9, 2021.
On November 17, 2021, Arrival announced a $200 million offering of green convertible senior notes due 2026, intended to finance the development of EVs. On the same day, November 17, 2021, Arrival announced the commencement of an underwritten public offering of 25 million ordinary shares pursuant to a registration statement on Form F-1 filed with the SEC in a bid to raise around $330 million in cash. On this news, Arrival’s stock price declined by $0.82 per share, or approximately 7.64%, from $10.73 per share to close at $9.91 per share on November 18, 2021.
The lawsuit alleges throughout the Class Period, Defendants made materially false and/or misleading statements and failed to disclose to investors that: (i) the Company would record a substantially greater net loss and adjusted EBITDA loss in the third quarter of 2021 compared to the third quarter of 2020; (ii) the Company would experience far greater capital and operational expense to operate and deploy its microfactories and manufacture EV vehicles than it had disclosed; (iii) the Company would not capitalize on or achieve profitability or provide meaningful revenue in the time periods disclosed; (iv) the Company would not achieve its disclosed production and sales volumes; (v) the Company would not meet the disclosed production rollout deadlines. Accordingly, the Company materially overstated its financial and operational position and/or prospects, and (vi) as a result, the Company’s public statements were materially false and misleading at all relevant times.