XL Fleet Must Face Investor Sales Pipeline, Revenue Allegations

XL Fleet Corp. lost its bid to throw out a securities suit after a federal judge in New York ruled investors sufficiently alleged intentional or reckless false statements.

Investors accuse the commercial fleet electrification company of making misleading statements about its sales pipeline, revenue projections, and other topics. The would-be class complaint properly alleged that at least some of the challenged XL Fleet statements were intentionally or recklessly misleading, the U.S. District Court for the Southern District of New York said.

The investors say XL Fleet, which formed via a special purpose acquisition company merger, didn’t tell them that ...