Workhorse Investors Claim Electric Vehicle Maker Lied About USPS Contract

Workhorse Group investors say the electric vehicle company made deceptive claims about its ultimately unsuccessful bid for a United States Postal Service (USPS) contract in a class action lawsuit.

Filed this week in California federal court, the lawsuit claims that investors lost when the company’s share price dipped by over 47 percent after news broke that it lost the USPS contract, according to Business Journal Daily.

The class action lawsuit says that investors were misled by statements made by Workhorse Group executives about the certainty of a contract with the USPS. The plaintiffs say in their lawsuit that the statements made investors believe that the contract was a sure thing and glossed over the reality that electrifying the entire USPS fleet would be “impractical and astronomically expensive.”

Workhorse CEO Duane Hughes and Chief Financial Officer Steve Schrader made statements to the media that failed to disclose the lack of assurances regarding a USPS contract, along with “adverse facts pertaining to the company’s business, operational, and financial results,” according to the lawsuit. 

Workhorse Group, headquartered in Cincinnati, was reportedly among the top finalists for a USPS contract for electric delivery vehicles; however, USPS announced that it was going with Oshkosh Defense on Feb. 23, 2021. 

The class action lawsuit alleges that Workhorse Group stock plummeted after the announcement. In addition to the investors’ class action, several lawmakers indicated that they will push for a stop to the project pending further investigation into accusations of improper influences on the deal, given how lucrative the deal will be for the awardee — $6 billion in federal funding, according to Business Journal Daily. 

“This contract will have consequences for decades to come and, as such, we have serious concerns it could be a wasted opportunity to address the climate crisis and the reindustrialization of our manufacturing sector,” U.S. Rep. Tim Ryan and U.S. Rep. Marcy Kaptur and Democrat U.S. Sen. Sherrod Brown all of Ohio in a letter to President Joe Biden. 

In addition, U.S. Rep. Tim Ryan is reportedly urging the Securities and Exchange Commission to examine a $54 million stock deal made the day before the USPS contract was announced. 

Did you invest in Workhorse Group and lose money when it announced it had lost the USPS contract? Were you duped by allegedly misleading statements made by company executives? Tell us about it in the comment section below. 

The plaintiffs are represented by The Rosen Law Firm.

Read About More Class Action Lawsuits & Class Action Settlements:

• Judge Orders Postal Service to Stop Ballot Delivery Delays
• USPS Halts Changes Ahead of Election Day As States Launch Lawsuits
• Do You Qualify: Data Breach Lawsuit Claim Review
• Do You Qualify: Social Security Disability Application & Appeal Claim Review