Class Action Filed On Behalf Of Faraday Future Investors Who Acquired Their Securities Between January 28, 2021 And November 15, 2021, Both Dates Inclusive
On December 23, 2021, a class action lawsuit was filed in United States District Court, Central District of California, on behalf of persons and entities that purchased, or otherwise acquired, the securities of Faraday Future Intelligent Electric Inc. (“Faraday Future” or the “Company”) (NASDAQ: FFIE) between January 28, 2021 and November 15, 2021, both dates inclusive (the “Class Period”).
TO DISCUSS JOINING THE CLASS ACTION, PLEASE CLICK “JOIN THE CLASS ACTION” OR “SECURITIES CLASS ACTION QUESTIONNAIRE.”
The class action lawsuit is pursuing claims against the Faraday Future Defendants under the Securities Exchange Act of 1934. According to the class action complaint, throughout the Class Period, the Faraday Future Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Faraday Future Defendants failed to disclose to investors that (1) the Company had assets in China frozen by courts, (2) a significant percentage of its deposits for future deliveries were attributable to a single undisclosed affiliate; (3) the Company’s cars were not as close to production as the Company claimed; (4) that, as a result of previously issued statements that were misleading and/or inaccurate, Faraday Future could not timely file its quarterly report; and (5) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
As a result of the Farady Future Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s securities, Plaintiff and other class members, according to the complaint. have suffered significant losses and damages.
TO VIEW A COPY OF THE COMPLAINT, PLEASE CLICK “FARADAY FUTURE CLASS ACTION COMPLAINT.”
Faraday Future investors should be aware that J Capital Research recently issued a report, “Move Over Lordstown: There’s a New EV Scam in Town,” which, among other things stated that “[J Capital Research doesn’t] think Faraday Future (FFIE), an EV SPAC, will ever sell a car. So far, it’s nothing but a bucket to collect money from U.S. investors and pour it into the black hole of debt created by its founder, China’s best-known securities fraudster, Jia Yueting.”
The research report also stated that “[a]fter eight years in business, FFIE has failed to deliver a car and is yet again saying ‘next year.’ The company has reneged on promises to build factories in five localities in the U.S. and China and repeatedly delayed the sixth. FFIE is being sued by dozens of unpaid suppliers and has failed to disclose that assets in China have been frozen by courts. And Jia appears to be running the company behind the scenes.”
Additionally, J Capital Research reported that “[g]iven the current bubble environment, FFIE nevertheless managed to raise about $1 bln from U.S. investors via PIPEs and SPAC merger in July. Now it promises to restart its abandoned factory in Hanford, California and mass-produce cars in just seven months. [J Capital Resarch] doubt[s] that timeline will hold: three recent visits to the factory showed little activity, and company formers told us there are still engineering problems to work out.”
On November 15, 2021, Faraday Future filed a Form 8-K which stated that “. . . the Company will be unable to timely file its Quarterly Report on Form 10-Q for the third quarter ended September 30, 2021 or its amended Registration Statement on Form S-1 (File No. 333-258993) and (ii) certain business and operational updates from the third quarter of 2021.”
Faraday Future’s stock has declined since its November 15, 2021 closing price and was down more than 6% during intraday trading on November 24, 2021.