EV Maker Mullen Auto Sued by Investors Over Reverse Stock Splits

Mullen Automotive Inc. misled investors ahead of reverse stock splits to keep the struggling electric vehicle maker’s share prices afloat, a proposed class action said.

Mullen and executives overstated its battery technology capabilities and business deals before consolidating its stock into fewer, higher-priced shares several times over the past few years, investors told the US District Court for the Central District of California on Wednesday. The EV maker performed five reverse splits since May 2023, with the most recent this February, said Cayden Crume, James LeGrand, Todd Holton’s complaint.

Less than a month before its May 2023 reverse split, ...