Scott+Scott Attorneys at Law LLP Advises Investors of February 22 Deadline in Securities Class Action Against Arrival SA (ARVL)
NEW YORK, Jan. 13, 2022 (GLOBE NEWSWIRE) — Scott+Scott Attorneys at Law LLP (“Scott+Scott”), an international shareholder and consumer rights litigation firm, advises investors that a securities class action lawsuit has been filed against Arrival SA (“Arrival” or the “Company”) (NASDAQ: ARVL) and certain other defendants. If you purchased common stock or warrants of Arrival between November 18, 2020 and November 19, 2021, you are encouraged to contact Rhiana Swartz for additional information at (844) 818-6980, or at [email protected]. The lead plaintiff deadline is February 22, 2022.
Arrival (formerly Arrival Luxembourg S.à. r.l.) was founded in 2015 as a private company headquartered in London, United Kingdom. Arrival is a manufacturer and distributor of commercial electric vehicles (“EVs”), including vans, cars, and buses. Arrival develops vertically integrated technologies and products that create a new approach to the assembly of EVs. According to Arrival, its proprietary in-house developed components, materials, software and robotic technologies, combined with low capital expenditure and rapidly scalable microfactories, enable Arrival to produce EVs that are competitively priced to traditional fossil fuel vehicles and with a substantially lower total cost of ownership for customers.
On March 24, 2021, Arrival consummated a business combination (the “Merger”) with CIIG Merger Corp. (“CIIG”). Prior to its business combination with Arrival, CIIG was a special purpose acquisition company, also known as a “blank check” company, incorporated for the purpose of entering into a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization, or similar business combination with one or more businesses or entities. Upon the consummation of the Merger, CIIG changed its name from CIIG to Arrival Vault US Inc.
The lawsuit alleges that, throughout the Class Period, Arrival and the other defendants made materially false and misleading statements regarding the Company’s business, operations, and compliance policies; specifically (i) the Company would record a substantially greater net loss and adjusted EBITDA loss in the third quarter of 2021 compared to the third quarter of 2020; (ii) the Company would experience far greater capital and operational expense to operate and deploy its microfactories and manufacture EV vehicles than it had disclosed; (iii) the Company would not capitalize on or achieve profitability or provide meaningful revenue in the time periods disclosed; (iv) the Company would not achieve its disclosed production and sales volumes; (v) the Company would not meet the disclosed production rollout deadlines; (vi) accordingly, the Company materially overstated its financial and operational position and/or prospects; and (vii) as a result, the Company’s public statements were materially false and misleading at all relevant times.
Investors learned the truth about the Arrival’s financial and operational health through a series of disclosures beginning on November 8, 2021. On November 8, 2021, Arrival announced the Company’s financial results for the third quarter of 2021, including a loss of €26 million (compared to a loss of €22 million during the same quarter a year earlier), and adjusted EBITDA loss for the quarter of €40 million (compared to a loss of €18 million in the third quarter of 2020). The Company also pulled its 2022 revenue goals and significantly scaled back its long-term projections, pushing its production and sales timeline into later time periods.
On this news, shares of Arrival plummeted $4.91, or 27.5%, to close at $12.88 on November 9, 2021.
A week later, on November 17, 2021, Arrival announced a $200 million offering of green convertible senior notes due 2026, intended to finance the development of EVs. That same day, Arrival announced the commencement of an underwritten public offering of 25 million ordinary shares in a bid to raise around $330 million in cash.
On this news, Arrival shares dropped $0.82, or approximately 8%, to close at $9.91 on November 18, 2021.
Lead Plaintiff Deadline
The Lead Plaintiff deadline in this action is February 22, 2021. Any member of the proposed Class may seek to serve as Lead Plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed Class.
What You Can Do
If you purchased Arrival common stock or warrants between November 18, 2020 and November 19, 2021, or if you have questions about this notice or your legal rights, you are encouraged to contact attorney Rhiana Swartz at (844) 818-6980 or [email protected].
About Scott+Scott
Scott+Scott has significant experience in prosecuting major securities, antitrust, and consumer rights actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Amsterdam, Connecticut, California, Virginia, and Ohio.
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CONTACT:
Rhiana Swartz
Scott+Scott Attorneys at Law LLP
230 Park Avenue, 17th Floor, New York, NY 10169
(844) 818-6980
[email protected]
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