Lordstown Motors discloses Justice Department investigation

The electric-truck startup says probe focuses on matters related to its reverse merger deal and preorders for the Endurance

Electric-truck startup Lordstown Motors Corp. confirmed the Justice Department is probing its business, investigating matters related to its reverse merger deal last year and preorders for its forthcoming pickup truck, the Endurance.

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In a regulatory filing Thursday, the company said it had been informed by the U.S. attorney’s office in Manhattan of its investigation, which follows one initiated by the U.S. Securities and Exchange Commission.

The Wall Street Journal first reported the Justice Department’s inquiry earlier this month.

Signage outside Lordstown Motors Corp. headquarters in Lordstown, Ohio, U.S., on Saturday, May 15, 2021. (Bloomberg via Getty Images)

A spokesman for the Justice Department declined to comment.

Lordstown Motors didn’t have an immediate comment. A spokesman said earlier this month the company is committed to cooperating with any investigations and inquiries and looks forward to focusing on production with its new leadership team.

JUSTICE DEPARTMENT IS PROBING LORDSTOWN MOTORS

The Ohio-based startup has said it has received two subpoenas from the SEC requesting documents and information related to its merger deal in October with publicly traded DiamondPeak Holdings Corp., a special-purpose acquisition company.

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The SEC is also seeking information related to the company’s preorder book for its all-electric pickup truck. Those preorders had been promoted by executives and the upstart manufacturer as a sign of future demand for the Endurance, which has yet to go into production.