Lordstown Motors Proposes Settlement in Bankruptcy Plan

Lordstown Motors (RIDEQ) has released an update to notify the public and investors about a regulation fd disclosure.

Lordstown Motors Corp. and its subsidiaries, collectively known as the Debtors, filed for Chapter 11 bankruptcy on June 27, 2023, with proceedings being managed under the U.S. Bankruptcy Court for the District of Delaware. They have since proposed a plan which includes a settlement for the Ohio Securities Litigation, offering $3 million and a share of future proceeds to class members. The plan also seeks to address a $45 million SEC claim, contingent on SEC approval. A hearing to consider the plan’s confirmation is scheduled for February 22, 2024. The company cautions stockholders about the speculative nature of trading its stock during these proceedings, and the plan itself remains subject to court approval and may change.

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For a comprehensive understanding of the announcement, you can read the full document here.