Mullen Automotive, 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 Central District of California on behalf of those who acquired Mullen Automotive, Inc. (“Mullen” or the “Company”) (NASDAQ: MULN, NETE) securities from June 15, 2020 through April 6, 2022, both dates inclusive (the “Class Period”). Investors have until July 5, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Mullen is an electronic vehicle (“EV”) manufacturer. On November 5, 2021, Mullen Technologies, Inc. underwent a merger with and into Net Element, Inc., and the Company changed its name to Mullen Automotive, Inc. (the “Merger”).
On April 6, 2022, during trading hours, market analyst Hindenburg Research released a report regarding the Company entitled “Mullen Automotive: Yet Another Fast Talking EV Hustle” which detailed several alleged issues with the Company (the “Hindenburg Report”). On this news, Mullen’s stock price declined by $0.27 per share, or approximately 11.34%, from $2.65 per share to close at $2.38 per share on April 7, 2022.
The lawsuit alleges throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Mullen overstates its ability and timeline regarding production; (2) Mullen overstates its deals with business partners, including Qiantu; (3) Mullen overstates its battery technology and capabilities; (4) Mullen overstates its ability to sell its branded products; (5) Net Element did not conduct proper due diligence into Mullen Technologies; (6) the Dragonfly K50 was not (solely) delayed due to the COVID-19 pandemic; and (7) as a result, Defendants’ public statements were materially false and/or misleading at all relevant times.