Lost Money in Mullen Automotive?

Gibbs Law Group Investigates Potential Securities Law Violations

A Mullen Automotive class action lawsuit has been filed on behalf of investors who lost money in Mullen MULN. Shares of Mullen Automotive dropped 10% on April 6, 2022, after Hindenburg Research published a report alleging that the company misrepresented test results for its solid-state battery technology, exaggerated its business relationships, and overstated its ability to manufacture and sell its branded products. If you purchased or acquired Mullen Automotive shares between June 15, 2020, and April 6, 2022, please reach out to Gibbs Law Group to discuss your legal rights and options.

To speak with an attorney regarding this class action lawsuit investigation, click here or call (888) 410-2925.

On Wednesday, April 6, 2022, Hindenburg Research released a scathing report accusing development-stage electronic vehicle (EV) manufacturer, Mullen Automotive, of overstating its business deals, production timeline, and battery technology, among other things. According to Hindenburg Research, Mullen falsely claimed that two electric cargo vans it would be manufacturing were its own, when they are actually Chinese EVs called the Qiantu K50, rebranded with a Mullen logo. Previously, in December 2018, Mullen and Chinese auto manufacturer, Qiantu, announced that they signed an agreement to sell and assemble cars in North America and Mullen subsequently put its logo on Qiantu's K50 vehicle and re-branded it as the DragonFly. Mullen's then-CTO Frank McMahon announced at an auto show that sales for the DragonFly would begin in 2020. But following the reveal, Mullen allegedly defaulted on its payment obligations to Qiantu, and Qiantu terminated their agreement in October 2019, yet Mullen continued marketing the vehicle as its own product, despite lacking the finances or technology to commercially produce these vehicles on its own, per the Hindenburg report.