Failed electric jet startup Lilium NV and its top executives defeated investor allegations they touted its fundraising success before disclosing its main subsidiaries lacked sufficient funds and would file for insolvency.
The private investment vehicle leading the case sufficiently alleged Lilium omitted its risk of imminent insolvency absent a German government loan, Judge Rodney Smith said. Because Lilium made statements about its fundraising capabilities, it had a duty to disclose any key change in that ability, and a reasonable investor could’ve viewed that omission tied to the German loan as significantly altering the information available to shareholders.
But the complaint ...
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