Arrival SA Investor News - Robbins LLP is Investigating Arrival SA (ARVL, ARVLW)
SAN DIEGO--(BUSINESS WIRE)--Dec 15, 2022--
Shareholder rights law firm Robbins LLP is investigating Arrival SA (NASDAQ: ARVL, ARVLW) to determine whether certain Arrival officers and directors violated securities laws and breached fiduciary duties to shareholders between November 18, 2020 and November 19, 2021. Arrival manufactures and distributes commercial electric vehicles (EVs), including vans, cars, and buses.
If you would like more information about our investigation of Arrival SA’s misconduct, click here.
Arrival SA (ARVL, ARVLW) Misled Investors Regarding its Business Prospects
According to a class action complaint filed against the Company, on March 24, 2021, Arrival combined with CIIG Merger Corp., a special purpose acquisition corporation, and began trading under the symbols ARVL and ARVLW on March 25, 2021. During the class period, defendants purportedly failed to disclose that: (i) the Company would record a substantially greater net loss and adjusted EBITDA loss in the third quarter 2021 compared to third quarter 2020; (ii) would experience far greater capital and operational expense to operate and deploy its microfactories and EV vehicles than it had disclosed; and (iii) would not achieve profitability or provide meaningful revenue in the time periods disclosed. Further, defendants failed to disclose that the Company would not achieve its disclosed production and sales volume or its production rollout deadlines.
The truth came out in a series of disclosures beginning on November 8, 2021. On that date, Arrival announced its financial results for the third quarter 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 scaled back its long-term projections, pushing its production and sales timeline into later time periods. On this news, Arrival shares plummeted 24%, to close at $13.46 on November 10, 2021.
Then, on November 17, 2021, Arrival announced a $200 million offering of green convertible senior notes due 2026, intended to finance the development of EVs. On the same day, Arrival announced the commencement of an underwritten public offering of 25 million ordinary shares intended to raise around $330 million. On this news, Arrival shares dropped approximately 8%, to close at $9.91 per share on November 18, 2021, harming investors.
Next Steps: Arrival SA (ARVL, ARVLW) shareholders have legal options. If you own shares of Arrival SA contact us for more information about your legal rights .
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
Contact us to learn more:
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About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against Arrival SA settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.
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View source version on businesswire.com:https://www.businesswire.com/news/home/20221215006095/en/
CONTACT: Aaron Dumas
5060 Shoreham Pl., Ste. 300
San Diego, CA 92122
KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA
INDUSTRY KEYWORD: CLASS ACTION LAWSUIT PROFESSIONAL SERVICES LEGAL
SOURCE: Robbins LLP
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PUB: 12/15/2022 05:35 PM/DISC: 12/15/2022 05:35 PM