Proterra Misled Investors on Liquidity Pre-Bankruptcy, Suit Says

Proterra Inc. and its top executives misled investors about liquidity problems for nearly two years following a SPAC merger, a proposed class action suit says.

Investors allegedly bought stock in the electric bus maker at artificially inflated prices during that period, and the revelation of the company’s financial problems contributed to significant stock drops, according to the complaint filed Sept. 1 in US District Court for the Northern District of California.

The alleged misrepresentations began in August 2021, two months after Proterra merged with special purpose acquisition company ArcLight Clean Transition Corp., when the company issued an investor letter disclosing ...