Fisker 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 Central District of California on behalf of those who acquired Fisker Inc. (“Fisker” or the “Company”) (NYSE: FSR) securities during the period from August 4, 2023 through November 20, 2023 (the “Class Period”). Investors have until January 26, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On November 8, 2023, Fisker announced that the completion of the Company’s financial statements would be delayed due to the appointment of a new chief accounting officer (“CAO”) and the departure of the Company’s former CAO. The Company had previously announced former CAO, John Finnucan provided notice of intent to resign on September 19, 2023, as effective October 27, 2023. Fisker’s new CAO, Florus Beuting, was hired effective as of November 6, 2023. The Company advised it “expects to file its Form 10-Q by November 14, 2023.” On this news, the price of Fisker shares declined by $0.38 per share, or approximately 8.7%, from $4.37 per share to close at $3.99 on November 8, 2023.
On November 13, 2023, Fisker announced its third quarter 2023 financial results, reporting a loss of $91.0 million and $0.27 loss per share. The Company also reported $78.02 million in selling, general and administrative operating costs and expenses, as well as $9.42 million for research and development, totaling $87.44 million for total operating costs and expenses for the three months ended September 30, 2023. The Company also cut its production forecast for the year and disclosed that, though 4,725 Oceans were built in the third quarter, only 1,097 were delivered to customers. The Company also announced it would be unable to timely file the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023.
On the same day, the Company held an earnings call wherein Defendants disclosed that the delay in reporting was due to having a “highly complex quarter” including “very complex accounting along with convertible notes and accounting for derivative” and “things like raw material inventory accounting and finished goods inventory accounting[.]” On this news, the price of Fisker shares declined by $0.77 per share, or approximately 18.7%, from $4.11 per share to close at $3.34 on November 14, 2023.
Then, on November 20, 2023, after the market closed, the Company disclosed that Beuting, the CAO hired November 6, 2023, had, on November 14, 2023, provided notice of his intent to resign from the Company effective immediately. Specifically, the Company stated: On November 14, 2023, Florus Beuting, the chief accounting officer of Fisker Inc. (the “Company”), provided notice of his intent to resign from the Company effective immediately. On this news, the Company’s share price fell $0.35, or 15%, to close at $2.00 per share on November 21, 2023 on unusually heavy trading volume.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) Fisker had a material weakness in its internal control over financial reporting; (ii) Fisker had incorrectly accounted for certain costs; (iii) as a result, the Company was likely to delay filing its quarterly report; and (iv) Fisker’s infrastructure was limiting its ability to deliver its production.
On November 8, 2023, Fisker announced that the completion of the Company’s financial statements would be delayed due to the appointment of a new chief accounting officer (“CAO”) and the departure of the Company’s former CAO. The Company had previously announced former CAO, John Finnucan provided notice of intent to resign on September 19, 2023, as effective October 27, 2023. Fisker’s new CAO, Florus Beuting, was hired effective as of November 6, 2023. The Company advised it “expects to file its Form 10-Q by November 14, 2023.” On this news, the price of Fisker shares declined by $0.38 per share, or approximately 8.7%, from $4.37 per share to close at $3.99 on November 8, 2023.
On November 13, 2023, Fisker announced its third quarter 2023 financial results, reporting a loss of $91.0 million and $0.27 loss per share. The Company also reported $78.02 million in selling, general and administrative operating costs and expenses, as well as $9.42 million for research and development, totaling $87.44 million for total operating costs and expenses for the three months ended September 30, 2023. The Company also cut its production forecast for the year and disclosed that, though 4,725 Oceans were built in the third quarter, only 1,097 were delivered to customers. The Company also announced it would be unable to timely file the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023.
On the same day, the Company held an earnings call wherein Defendants disclosed that the delay in reporting was due to having a “highly complex quarter” including “very complex accounting along with convertible notes and accounting for derivative” and “things like raw material inventory accounting and finished goods inventory accounting[.]” On this news, the price of Fisker shares declined by $0.77 per share, or approximately 18.7%, from $4.11 per share to close at $3.34 on November 14, 2023.
Then, on November 20, 2023, after the market closed, the Company disclosed that Beuting, the CAO hired November 6, 2023, had, on November 14, 2023, provided notice of his intent to resign from the Company effective immediately. Specifically, the Company stated: On November 14, 2023, Florus Beuting, the chief accounting officer of Fisker Inc. (the “Company”), provided notice of his intent to resign from the Company effective immediately. On this news, the Company’s share price fell $0.35, or 15%, to close at $2.00 per share on November 21, 2023 on unusually heavy trading volume.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) Fisker had a material weakness in its internal control over financial reporting; (ii) Fisker had incorrectly accounted for certain costs; (iii) as a result, the Company was likely to delay filing its quarterly report; and (iv) Fisker’s infrastructure was limiting its ability to deliver its production.