The investigation concerns whether Faraday and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On October 7, 2021, the veracity of Faraday’s statements concerning its claimed reservations and production capabilities came into question when analyst J. Capital released a scathing report. J. Capital suggests that Faraday’s claimed 14,000 deposits are fabricated, as 78% of these reservations were made by a single undisclosed company that is likely an affiliate. Based on interviews with former Faraday executives, J. Capital also claims the FF 91’s technology is not ready to go into production. Citing battery issues, parts supply and unqualified personnel, J. Capital concludes that Faraday Future is unlikely to ever sell a car to a consumer.
On this news, Faraday’s stock price fell $0.35, or 4.16%, to close at $8.05 on October 7, 2021.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Robert S. Willoughby
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