The Justice Department is probing embattled electric-truck startup Lordstown Motors Corp., according to people familiar with the matter. The Securities and Exchange Commission is also looking at the company.
The SEC first requested information from Lordstown Motors in February and has issued subpoenas regarding Lordstown Motors’ move last year to become a public company and its representations about preorders, according to company filings. Lordstown Motors has said it is cooperating with the SEC’s investigation.
Five Lordstown executives conducted a series of stock sales in early February that led outside accountants and securities lawyers to question the company’s internal controls over its executives’ trading. Those sales preceded the company’s sharing financial results from its first quarter as a publicly traded company with the market, results that underperformed analysts’ expectations. The company said a special committee of its board of directors found the trades were unrelated to the company’s performance.
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