Since June 28, Lordstown Motors (RIDE) stock has been decreasing at a crazy speed. The price was $11.31 and it has dropped by 18.4%. The Justice Department is investigating Lordstown Motors, which is struggling to stay afloat. Lordstown Motors’ stock fell by 10.8% after The Wall Street Journal reported that the Justice Department is investigating the company.
The US attorney’s office in Manhattan is investigating Lordstown Motors, people familiar with the matter said. The inquiry is focused on the company’s operations in Ohio and Pennsylvania. The SEC has issued multiple subpoenas to Lordstown Motors in connection with its move to become a public company last year. Lordstown Motors purchased a former General Motors plant in Ohio in 2019. The company became one of a group of electric vehicle startups that went public in 2018.
The company’s executives sold millions of shares in February, which led to questions about the company’s internal controls. A special committee investigating the transactions concluded that the sales were unrelated to the company’s performance. Lordstown Motors clarified on June 15 that no reservations were bound by the company.