Gibbs Law Group Investigates Potential Securities Law Violations
Gibbs Law Group announces that investors with significant losses in Mullen Automotive Inc. f/k/a Net Element (NASDAQ: MULN) have the opportunity to lead the securities class action against the company. Mullen Automotive Inc. shares initially dropped 10% on April 6, 2022, after Hindenburg Research published a report alleging that the company misrepresented test results for its solid-state battery technology, exaggerated its business relationships, and overstated its ability to manufacture and sell its branded products. As of May 2022, Mullen was down over 93% from its all-time high, according to InvestorPlace. If you purchased or acquired Mullen Automotive shares between June 15, 2020, and April 6, 2022, please reach out to Gibbs Law Group before the July 5, 2022 Lead Plaintiff Deadline to discuss your legal rights and options.
To speak with an attorney regarding this class action lawsuit investigation, click here or call (888) 410-2925.
On Wednesday, April 6, 2022, Hindenburg Research released a scathing report accusing development-stage electronic vehicle (EV) manufacturer, Mullen Automotive, of overstating its business deals, production timeline, and battery technology, among other things.
According to Hindenburg Research, Mullen falsely claimed that two electric cargo vans it would be manufacturing were its own, when they are actually Chinese EVs called the Qiantu K50, rebranded with a Mullen logo. Previously, in December 2018, Mullen and Chinese auto manufacturer, Qiantu, announced that they signed an agreement to sell and assemble cars in North America and Mullen subsequently put its logo on Qiantu’s K50 vehicle and re-branded it as the “DragonFly.” Mullen's then-CTO Frank McMahon announced at an auto show that sales for the DragonFly would begin in 2020. But following the reveal, Mullen allegedly defaulted on its payment obligations to Qiantu, and Qiantu terminated their agreement in October 2019, yet Mullen continued marketing the vehicle as its own product, despite lacking the finances or technology to commercially produce these vehicles solo, per the Hindenburg report.
Hindenburg alleges that Mullen has made sweeping claims about other vehicles like the Mullen FIVE EV Crossover, estimating that “the company would likely need billions in capital to launch the FIVE, given that Mullen proposes to essentially build the vehicle and retool/build a manufacturing facility from the ground” adding that the “the company has barely made any progress toward this massive goal, acknowledging in its recent annual report that it is still negotiating with various manufacturing integration companies to assist in all aspects of design and development of a facility.” In a June 22, 2022 update, Mullen stated that over 130 patents for the FIVE EV Crossover program remain pending.
The Hindenburg report further claims that Mullen misrepresented the nature of its business relationships with several companies. For example, Hindenburg spoke with a senior executive who claimed that Mullen’s 2020 joint venture with NextMetals Ltd to manufacture its solid-state battery technology “didn’t exist at all,” and was a complete fabrication.
Following the news of the Hindenburg report, Mullen Automotive stock dropped 10%, on April 6, 2022, causing significant harm to investors.
What Should Mullen Automotive Investors Do?
If you invested in Mullen Automotive, visit our website or contact our securities team directly at (888) 410-2925 to discuss how you may be able to recover your losses. Our investigation concerns whether Mullen Automotive has violated federal securities laws.
About Gibbs Law Group
Gibbs Law Group represents individual and institutional investors throughout the country in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and our attorneys have received numerous honors for their work, including “Best Lawyers in America,” “Top Plaintiff Lawyers in California,” “California Lawyer Attorney of the Year,” “Top Class Action Attorneys Under 40,” “Consumer Protection MVP,” and “Top Cybersecurity/ Privacy Attorneys Under 40.”
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