BENSALEM, Pa.–(BUSINESS WIRE)–Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Proterra Inc. (“Proterra” or the “Company”) (NASDAQ: PTRA) securities between August 2, 2022 and March 15, 2023, inclusive (the “Class Period”). Proterra investors have until September 12, 2023 to file a lead plaintiff motion.
Investors suffering losses on their Proterra investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to [email protected].
On March 15, 2023, Proterra announced its 2022 financial results. The Company disclosed that it saw an increase in cash burn due to a decrease in gross margin and an increase in accounts receivable. As a result, the Company claimed that it was in violation of a liquidity clause in its secured convertible notes, and that it may have to qualify its audit report with a “going concern” clause.
On this news, Proterra’s stock price fell $1.35, or 53.6%, to close at $1.17 per share on March 16, 2023, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Company repeatedly stated the $523 million on their balance sheet meant the company had abundant liquidity and financial stability; (2) the new factory would continue to improve production efficiency and gross margins; and (3) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased Proterra securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to [email protected], or visit our website at www.howardsmithlaw.com.
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