RADNOR, Pa., January 17, 2021 / PRNewswire / – Law firm Kessler Topaz Meltzer & Check, LLP Warns Investors that a Securities Fraud Class Action has been filed against QuantumScape Corporation (NYSE: QS) (“QuantumScape”) on behalf of those who have purchased or otherwise acquired QuantumScape Listed Securities Between November 27, 2020 and December 31, 2020, inclusive (the “Class Period”).
Investors who have purchased or otherwise acquired QuantumScape listed securities during the Recourse Period may, not later than March 8, 2021, seeks to be appointed principal representative of the applicants of the group. For more information or to find out how to participate in this dispute, please contact Kessler Topaz Meltzer & Check, LLP (James Maro, Esq. (484-270-1453) or Adrienne Bell, Esq. (484-270-1435)); toll free at (844) 887-9500; by e-mail to [email protected]; or Click on https://www.ktmc.com/quantumscape-corporation-securities-class-action?utm_source=PR&utm_medium=link&utm_campaign=qunatumscape#overview
According to the complaint, QuantumScape develops and markets lithium-metal solid-state batteries for electric vehicles (“EVs”). In 2012, QuantumScape began working with Volkswagen Group of America, Inc. (“Volkswagen”) and Volkswagen Group of America Investments, LLC (“VGA”) to develop an EV battery. In 2018, Volkswagen, VGA and QuantumScape announced the establishment of a joint production project to prepare solid-state batteries for mass production. Sure September 3, 2020, QuantumScape announced a merger with Kensington. Upon completion of the transaction, QuantumScape would receive $ 1 billion in funding, including funding from VGA and the Qatar Investment Authority. This transaction was completed on November 27, 2020, and the Class A common shares and warrants of QuantumScape have started trading on the NYSE.
Sure January 4, 2021, prior to the opening of trading, Seeking Alpha released a research report titled “QuantumScape Solid-State Batteries Have Significant Technical Barriers to Overcome.” The introduction to the Seeking Alpha report pointed out that “the science of QuantumScape is very good” ”.[b]ut their batteries are small and unproven – not yet as big as an iWatch battery, and never tested outside of a lab, “adding that”[t]here are important risks associated with solid-state batteries that have not been overcome, “and emphasizing that”[t]hey will probably never achieve the performance they claim.
In the wake of this news, market prices for QuantumScape publicly traded securities fell precipitously, with the price of QuantumScape’s Class A common stock falling more than 63% from its peak of over $ 131 per share on December 22, 2020 close at $ 49.96 per share on January 4, 2021, including a drop of more than one day $ 34 per share, or 41%, on January 4, 2021.
The complaint alleges that, throughout the Class Period, the Defendants misrepresented and / or failed to disclose to investors that: (a) QuantumScape’s battery technology was not sufficient for the performance of EVs because it did not would not be able to withstand the aggressive automotive environment; (b) QuantumScape’s battery technology has probably not provided any significant improvement over existing battery technology; (c) the successful commercialization of QuantumScape’s battery technology was subject to far greater risks and uncertainties than those which the defendants had disclosed; and (d) because of the foregoing, the defendants have significantly overestimated the value and prospects of QuantumScape’s battery technology.
QuantumScape investors who wish to discuss this securities fraud class action lawsuit and their legal options are encouraged to contact Kessler Topaz Meltzer & Check, LLP (James Maro, Jr., Esq. or Adrienne Bell, Esq.) at (844) 887-9500 (toll free) or at [email protected].
QuantumScape investors can, not later than March 8, 2021, seeks to be appointed as the principal representative of class claimants through Kessler Topaz Meltzer & Check, LLP or another lawyer, or may elect to do nothing and remain an absent class member. A principal plaintiff is a representative party who acts on behalf of all members of the class in directing the litigation. To be appointed as the Principal Plaintiff, the Court must determine that the Class Member’s claim is typical of the claims of other Class Members and that the Class Member will adequately represent the Class. Your ability to participate in any recovery is not affected by the decision whether or not to serve as the principal applicant.
Kessler Topaz Meltzer & Check, LLP, is pursuing class actions in state and federal courts across the country relating to securities fraud, breaches of fiduciary duty, and other violations of state and federal law. Kessler Topaz Meltzer & Check, LLP is a driving force behind corporate governance reform and has raised billions of dollars on behalf of institutional and individual investors from United States And in the world. The company represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and participate in the recovery of public funds). The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information on Kessler Topaz Meltzer & Check, LLP, please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
(844) 887-9500 (toll free)
SOURCE Kessler Topaz Meltzer & Check, LLP