SAN DIEGO--(BUSINESS WIRE)--The law firm of Robbins Geller Rudman & Dowd LLP announces that purchasers or acquirers of Faraday Future Intelligent Electric Inc. f/k/a Property Solutions Acquisition Corp. (NASDAQ: FFIE; FFIEW) securities between January 28, 2021 and November 15, 2021, both dates inclusive (the “Class Period”) have until February 22, 2022 to seek appointment as lead plaintiff in Zhou v. Faraday Future Intelligent Electric Inc. f/k/a Property Solutions Acquisition Corp., No. 21-cv-09914. Commenced on December 23, 2021 in the Central District of California, the Faraday Future class action lawsuit charges Faraday Future and certain of Faraday Future and Property Solutions Acquisition Corp.’s (“PSAC”) top executives with violations of the Securities Exchange Act of 1934.
If you suffered substantial losses and wish to serve as lead plaintiff of the Faraday Future class action lawsuit, please provide your information by clicking here. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.com. Lead plaintiff motions for the Faraday Future class action lawsuit must be filed with the court no later than February 22, 2022.
CASE ALLEGATIONS: Faraday Future claims it designs and engineers next-generation smart electric connected vehicles. PSAC was a special purpose acquisition company (known as a “SPAC” or “blank-check company”) formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. On January 28, 2021, PSAC and FF Intelligent Mobility Global Holdings Ltd. announced that they had entered into a definitive agreement for a business combination, and that the combined company would be renamed Faraday Future. On July 21, 2021, Faraday Future announced that it had completed the business combination and that its common stock and warrants would commence trading on the NASDAQ on July 22, 2021 under the ticker symbols FFIE and FFIEW, respectively.
The Faraday Future class action lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose that: (i) Faraday Future had assets in China frozen by courts; (ii) a significant percentage of its deposits for future deliveries were attributable to a single undisclosed affiliate; (iii) Faraday Future’s cars were not as close to production as Faraday Future claimed; (iv) as a result of previously issued statements that were misleading and/or inaccurate, Faraday Future could not timely file its quarterly report; and (v) consequently, defendants’ positive statements about Faraday Future’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On October 7, 2021, J Capital Research published a report alleging, among other things, that Faraday Future was unlikely to ever sell a car, noting that after eight years in business, Faraday Future has “failed to deliver a car,” “has reneged on promises to build factories in five localities in the U.S. and China,” “is being sued by dozens of unpaid suppliers,” and “has failed to disclose that assets in China have been frozen by courts.” Moreover, the report alleged that Faraday Future’s claimed 14,000 deposits are fabricated because 78% of these reservations were made by a single undisclosed company that is likely an affiliate. The report further alleges that contrary to representations of progress toward manufacturing made by Faraday Future in September 2021, former engineering executives did not believe that a car was ready for production. On this news, Faraday Future’s share price fell.
Then, on November 15, 2021, Faraday Future announced that it would be unable to file its Form 10-Q for the fiscal quarter ended September 30, 2021 on time. Faraday Future further announced that its board of directors “formed a special committee of independent directors to review allegations of inaccurate disclosures,” including the claims in the J Capital Research report. On this news, Faraday Future’s share price fell once more, further damaging investors.
Robbins Geller Rudman & Dowd LLP has launched a dedicated SPAC Task Force to protect investors in blank check companies and seek redress for corporate malfeasance. Comprised of experienced litigators, investigators, and forensic accountants, the SPAC Task Force is dedicated to rooting out and prosecuting fraud on behalf of injured SPAC investors. The rise in blank check financing poses unique risks to investors. Robbins Geller’s SPAC Task Force represents the vanguard of ensuring integrity, honesty, and justice in this rapidly developing investment arena.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Faraday Future securities during the Class Period to seek appointment as lead plaintiff in the Faraday Future class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Faraday Future class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Faraday Future class action lawsuit. An investor’s ability to share in any potential future recovery of the Faraday Future class action lawsuit is not dependent upon serving as lead plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions. Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors that year, more than double the amount recovered by any other securities plaintiffs’ firm. Please visit http://www.rgrdlaw.com for more information.
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