Archer Aviation, Inc.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of those who acquired Archer Aviation, Inc. (“Archer” or the “Company”) (NYSE: ACHR) securities during the period from September 17, 2021 through August 15, 2023, inclusive (the “Class Period”). Investors have until November 20, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On August 16, 2023, before the market opened, Grizzly Research released the Grizzly Report, announcing, in relevant part that Archer made a series of misrepresentations, most recently a contract award from the U.S. Department of Defense, which led a 40% run up in the stock. Additionally, the report disclosed that the latest rise in the stock came after Archer spun its last earnings announcement, which included the costly settlement of a legal dispute, as a big success; however, the Company actually (i) dispensed $100 million in free warrants for a $12 million investment by Boeing, (ii) diluted shareholders by 25%, and (iii) must now purchase key tech from a competitor.
The report also stated that Archer’s “daily” test flights were not conducted as often as the Company reported and the Company was doctoring its test flight videos to portray longer flight performance and more frequent testing. Finally, the report disclosed that Archer’s separation from one of its founders and co-CEO included an accelerated vesting of a large chunk of insider stock for expedited permissible selling, but this agreement was never fully disclosed to investors to evaluate its materiality.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) the Company relied on heavily edited videos of earlier flights to exaggerate the amount of flight testing it had actually performed and the sophistication of its eVTOL aircraft; (ii) the Company had misrepresented the nature and profitability of its business partnerships, (iii) the Company was unlikely to secure FAA certification in the timeframe it had represented to investors, thereby delaying the start of mass production of its aircraft for commercial sales; (iv) accordingly, the Company had overstated its financial position and/or prospects; and (v) all of the foregoing, once revealed, was likely to subject the Company to significant financial and/or reputational harm.
On August 16, 2023, before the market opened, Grizzly Research released the Grizzly Report, announcing, in relevant part that Archer made a series of misrepresentations, most recently a contract award from the U.S. Department of Defense, which led a 40% run up in the stock. Additionally, the report disclosed that the latest rise in the stock came after Archer spun its last earnings announcement, which included the costly settlement of a legal dispute, as a big success; however, the Company actually (i) dispensed $100 million in free warrants for a $12 million investment by Boeing, (ii) diluted shareholders by 25%, and (iii) must now purchase key tech from a competitor.
The report also stated that Archer’s “daily” test flights were not conducted as often as the Company reported and the Company was doctoring its test flight videos to portray longer flight performance and more frequent testing. Finally, the report disclosed that Archer’s separation from one of its founders and co-CEO included an accelerated vesting of a large chunk of insider stock for expedited permissible selling, but this agreement was never fully disclosed to investors to evaluate its materiality.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) the Company relied on heavily edited videos of earlier flights to exaggerate the amount of flight testing it had actually performed and the sophistication of its eVTOL aircraft; (ii) the Company had misrepresented the nature and profitability of its business partnerships, (iii) the Company was unlikely to secure FAA certification in the timeframe it had represented to investors, thereby delaying the start of mass production of its aircraft for commercial sales; (iv) accordingly, the Company had overstated its financial position and/or prospects; and (v) all of the foregoing, once revealed, was likely to subject the Company to significant financial and/or reputational harm.