Canoo Inc. investors are trying to “gin up” a securities fraud claim by ignoring disclosures the company made and alleging fraud by hindsight, the electric vehicle company argued in federal court in California.
Named plaintiff Vladi Shaulov says the company touted its engineering services line in the lead-up to a merger and then de-emphasized the business a few months after the deal was completed, without informing Canoo investors.
Shaulov was given the lead role in the would-be class case in February. The court approved Shaulov’s selection of Pomerantz LLP and Holzer & Holzer LLC as co-lead counsel.
The defendants moved to dismiss the suit May 20, arguing that the plaintiff failed to plead any actionable false or misleading statement and failed to include “any meaningful scienter” allegations despite requirements by the U.S. Supreme Court.
“Plaintiff does not allege any particularized facts showing defendants knowingly made alleged misleading statements,” the motion says. “Plaintiff also does not allege defendants traded stock at prices inflated by alleged misleading statements.”
Canoo is represented by Kirkland & Ellis LLP.
The case is Blake v. Canoo, C.D. Cal., No. 2:21-cv-02873, 5/20/22.
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