Lordstown Motors Under DOJ Investigation
![Lordstown Motors in Ohio is among the electric car startups that have struggled since going public](https://d.ibtimes.com.au/en/full/1731040/lordstown-motors-ohio-among-electric-car-startups-that-have-struggled-since-going-public.jpg?w=736&f=cd1ef7d723892b6eda7a3466cc968348)
The Justice Department is investigating electric vehicle automaker Lordstown Motors, according to a report Friday by the Wall Street Journal.
The U.S. attorney’s office in Manhattan is in the early stages of the probe, sources told the Journal, and Lordstown Motors has said that the Securities and Exchange Commission has also looked into the company.
“Lordstown motors is committed to cooperating with any governmental investigation or inquires," a Lordstown Motors spokesperson said.
As of Friday at 1:56 p.m ET., shares of Lordstown were trading at $9.27, down, 10.42%.
The Ohio-based company allegedly used fake orders to raise capital for its Endurance electric pick-up truck. The short-seller said the vehicle was years away from production. Lordstown says it is on pace to have the vehicle made by September.
Former CEO Steve Burns resigned from his position the day the company announced an internal investigation that found "issues regarding the accuracy of certain statements," around Lordstown preorders, the seriousness of the orders, and who was making them.
Investors filed a class-action lawsuit claiming executives were not showing information about the company's ability to meet its deadlines.