Pomerantz Appointed Co-Lead Counsel in Canoo Securities Litigation

On February 18, 2022, U.S. District Judge Fernando M. Olguin of the Central District of California appointed Pomerantz LLP as Co-Lead Counsel on behalf of Vladi Shaulov, the Lead Plaintiff in Blake v. Canoo Inc., 21-cv-2873 (C.D. Cal.), a securities action brought on behalf of a class of defrauded investors concerning allegations that Canoo Inc. (“Canoo” or the “Company”) misrepresented the viability of its engineering service and its ability to produce meaningful revenue.

Canoo designs consumer and commercial electric vehicles based on a multi-purpose modular platform, with the intention of manufacturing cars, minivans and delivery vehicles.

Allegations against Canoo include that it failed to disclose that: i) the Company’s engineering services was not a viable business, would not provide meaningful revenue in 2021, and would not reduce operational risk; and (ii) Canoo would no longer be focused on its subscription-based business model.

On March 29, 2021, Canoo revealed that it was abandoning its “unique business model” as it radically changed its operation to de-emphasize its engineering services business and decrease focus on its plan to sell vehicles to consumers through a subscription model. The Company also disclosed that its touted partnership with Hyundai Motor Company, previously announced in February 2020, was not proceeding.

On this news, Canoo’s share price fell $2.50 per share, or $21.2%, to close at $9.30 per share on March 30, 2021.