The law firm of Kessler Topaz Meltzer & Check, LLP reminds that an investor securities fraud class action lawsuit has been filed
RADNOR, Pa., Feb. 6, 2021 The law firm of Kessler Topaz Meltzer & Check, LLP reminds that an investor securities fraud class action lawsuit has been filed against QuantumScape Corporation (NYSE: QS) (“QuantumScape”) on behalf of those who purchased or otherwise acquired QuantumScape publicly traded securities between November 27, 2020 and December 31, 2020, inclusive (the “Class Period”).
Investors who purchased or otherwise acquired QuantumScape publicly traded securities during the Class Period may, no later than March 8, 2021, seek to be appointed as a lead plaintiff representative of the class.
According to the complaint, QuantumScape develops and commercializes solid-state lithium-metal batteries for electric vehicles (“EVs”). In 2012, QuantumScape began working with Volkswagen Group of America, Inc. (“Volkswagen”) and Volkswagen Group of America Investments, LLC (“VGA”) to develop an EV battery. In 2018, Volkswagen, VGA and QuantumScape announced the establishment of a joint production project to prepare solid-state batteries for mass production. On September 3, 2020, QuantumScape announced a merger with Kensington. Upon completion of the transaction, QuantumScape would receive $1 billion in financing, including funding from VGA and the Qatar Investment Authority. That transaction was completed on November 27, 2020, and QuantumScape Class A common stock and warrants began trading on the NYSE.
On January 4, 2021, prior to the open of trading, Seeking Alpha published a research report entitled “QuantumScape’s Solid State Batteries Have Significant Technical Hurdles To Overcome.” The introduction of the Seeking Alpha report emphasized that “QuantumScape’s science is very good,” “[b]ut their batteries are small and unproven – not yet as big as an iWatch battery, and never tested outside a lab,” adding that “[t]here are significant risks associated with solid state batteries that have not been overcome,” and emphasizing that “[t]hey will likely never achieve the performance they claim.”
Following this news, the market prices of QuantumScape publicly traded securities fell precipitously, with the price of QuantumScape’s Class A common stock declining more than 63% from its Class Period high of more than $131 per share on December 22, 2020 to close down at $49.96 per share on January 4, 2021, including a one-day decline of more than $34 per share, or 41%, on January 4, 2021.
The complaint alleges that, throughout the Class Period, the defendants misrepresented and/or failed to disclose to investors that: (a) QuantumScape’s battery technology was not sufficient for EV performance as it would not be able to withstand the aggressive automotive environment; (b) QuantumScape’s battery technology likely provided no meaningful improvement over existing battery technology; (c) the successful commercialization of QuantumScape’s battery technology was subject to much more significant risks and uncertainties than the defendants had disclosed; and (d) as a result of the foregoing, the defendants materially overstated the value and prospects of QuantumScape’s battery technology.
QuantumScape investors may, no later than March 8, 2021, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP, or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check.