Embark Technology, Inc.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of those who acquired Embark Technology, Inc. f/k/a Northern Genesis Acquisition Corp. II (“Embark” or the “Company”) (NASDAQ: EMBK, EMBKW) securities from January 12, 2021 to January 5, 2022 inclusive (the “Class Period”). Investors have until May 31, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Embark develops self-driving software solutions for the trucking industry.
On November 10, 2021, the Company merged with Embark Trucks Inc and changed its name from “Northern Genesis Acquisition Corp. II” to “Embark Technology, Inc.”.
On January 6, 2022, The Bear Cave published a short report entitled “Problems at Embark Technology (EMBK),” which alleged, among other issues, “that Embark appears to lack true economic substance,” that its “current evaluation appears to be based on puffery rather than actual substance”, and that “[t]he company holds no patents, has only a dozen or so test trucks, and may be more bark than bite.” On this news, the price of Embark shares declined by $1.37 per share, or approximately 16.75%, from $8.18 per share to close at $6.81 per share on January 6, 2022.
The lawsuit alleges throughout the Class Period, Defendants failed to disclose that: (i) the Company had performed inadequate due diligence into Embark in connection with the merger; (ii) Embark held no patents and an insignificant amount of test trucks; and (iii) accordingly, the Company had overstated its operational and technological capabilities.