CINCINNATI, OH – The U.S. Court of Appeals for the Sixth Circuit has upheld the dismissal of a shareholder lawsuit against former executives of Lordstown Motors Corp., ruling that the failed partnership with Foxconn did not amount to securities fraud.
The ruling came in Lim v. Hightower et al., Case No. 24-3960, which was filed after Lordstown filed for bankruptcy in 2023. Investors accused the company’s leadership of misleading them about the health of its business relationship with Foxconn. But the court found the executives’ public statements were either non-actionable opinions, forward-looking, or not intentionally misleading.
The court also agreed with the district judge’s decision to deny investors the chance to revise their complaint, saying they did not submit a proper request.
One judge dissented in part, saying key omissions about Foxconn’s alleged breach of contract could have misled shareholders.
Lordstown is still pursuing separate breach-of-contract claims against Foxconn.
