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 Volta Inc. (“Volta” or the “Company”) (NYSE: VLTA) securities from August 2, 2021 through March 28, 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.
Volta locates and deploys electric vehicle charging stations.
On August 26, 2021, Volta Industries, Inc., a private entity, and Tortoise Acquisition Corp. II, a special purpose acquisition company (SPAC), completed a business combination pursuant to which the combined entity was named Volta Inc..
On March 2, 2022, Volta revealed that the financial impact of the restatement of its third quarter 2021 financial results was greater than previously disclosed, expecting to report a net loss of $69.7 million for the quarter. On this news, the Company’s share price declined by $0.11 per share, from $4.12 per share to close at $4.01 per share on March 3, 2022.
Then, on March 21, 2022, Volta announced that it would reschedule its fourth quarter and full year 2021 financial results. On this news, the Company’s share price declined by $0.38 per share, or approximately 8.4%, from $4.50 per share to close at $4.12 per share on March 21, 2022.
Then, on March 28, 2022, Volta announced that its founders, Scott Mercer and Christopher Wendel, had resigned from their positions as CEO and President, respectively, and from the Company’s Board of Directors. On this news, the Company’s share price declined by $0.76 per share, or approximately 18.4%, from $4.13 per share to close at $3.37 per share on March 28, 2022.
The lawsuit alleges that: (1) Volta had improperly accounted for restricted stock units issued in connection with the August 2021 business combination, thereby understating its net loss for third quarter 2021; (2) there were material weaknesses in the Company’s internal control over financial reporting that resulted in a material error; and (3) as a result of the foregoing, the Company would restate its financial statements, and the Company’s founders would imminently exit the Company.