Quebec-based electric-vehicle manufacturer Lion Electric Co. is facing a class-action lawsuit from shareholders who allege the company misled investors and misrepresented its financial health.
The proposed lawsuit claims Lion Electric hid facts and details about its order book and production capacities from investors.
Shareholders say the company’s alleged actions led to huge financial losses for them, claiming that when Lion Electric’s struggles became public the stock lost 96 percent of its value on the Toronto and New York stock exchanges.
Among those named in the suit are directors, officers, auditors and underwriters of the company.
Lion Electric obtained protection from its creditors in December and is seeking a buyer with a restructuring plan that would focus only on school buses and return all manufacturing to Quebec.
The allegations in the class action, which was filed with the Quebec Superior Court in Montreal on Friday, have not been tested and the lawsuit has not yet been authorized.
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Lion Electric wasn’t immediately available for comment.
