Mullen Automotive, Inc.

On April 6, 2022, Hindenburg Research published a report alleging, among other things, that Mullen misrepresented results of certain battery testing. Furthermore, the report claimed that a 2020 joint venture to manufacture Mullen’s battery technology “didn’t exist at all” and was “an apparent fabrication.”

On this news, Mullen’s stock fell $0.34, or 12.5%, over two consecutive trading sessions to close at $2.38 per share on April 7, 2022, thereby injuring investors.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Mullen overstated its ability and timeline regarding production; (2) Mullen overstated its deals with business partners, including Qiantu Motors; (3) Mullen overstated its battery technology and capabilities; (4) Mullen overstated its ability to sell its branded products; (5) Net Element did not conduct proper due diligence into Mullen Technologies; (6) the Dragonfly K50 was not (solely) delayed due to the COVID-19 pandemic; and (7) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.