Source: Eric Broder Van Dyke / Shutterstock.com
Fisker (NYSE:FSR) stock is trading around an all-time low today as the automotive company comes to terms with a class action lawsuit in progress.
Indeed, the Gross Law Firm recently issued a notice to Fisker shareholders who purchased shares between Aug. 4 and Nov. 20 of last year, encouraging them to contact the firm “regarding possible lead plaintiff appointment.”
FSR is accused of making false statements in its financial reporting, erroneously accounting for certain costs, delaying its quarterly report, and limiting its production.
Shareholders have until Jan. 26 to register as lead plaintiff for the class action. Should Fisker be held accountable, a separate recovery period will be issued for those seeking financial compensation from Fisker. Being a lead plaintiff is not a requirement to seek recovery.
FSR Stock Sinks Amid Legal Troubles
Fisker’s legal problems are only the latest of the company’s troubles. Indeed, FSR is down over 10% today, trading at just 87 cents a share, close to the lowest level in the stock’s history.
Fisker has been the subject of a swarm of analyst downgrades recently. TD Cohen even downgraded FSR’s price target by 90% to just $1 from $11.
Just yesterday, FSR fell by more than 10% after the National Highway Traffic Safety Administration (NHTSA) announced a probe into Fisker’s Ocean SUV after numerous complaints over the vehicle’s braking performance. The vehicle apparently has a track record of losing partial braking performance on bumpy or low-tracking roads without notifying the driver.
FSR shed 88% of its value in 2023 and so far, things don’t look much better in the new year. Whether a turnaround is in store for the EV maker remains to be seen.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.