If you purchased shares of Workhorse Group, Inc. The truth was revealed on February 23, 2021, when the USPS announced, “it awarded a 10-year contract to Oshkosh, WI, based Oshkosh Defense, to manufacture a new generation of U.S.-built postal delivery vehicles that will drive the most dramatic modernization of the USPS fleet in three decades.” On this news, the price of Workhorse fell $14.88, or 47%, on February 23, 2021, and continued to drop in after-hours trading to open at $14.07 the next day. Workhorse failed to disclose that: (1) the Company was merely hoping that USPS was going to select an electric vehicle as its Next Generation Delivery Vehicle, and had no assurance or indication from USPS that this was the case and (2) the Company had concealed the fact that – as revealed by the postmaster general in explaining the ultimate decision not to select an electric vehicle – electrifying the USPS’s entire fleet would be impractical and extremely expensive.
These statements turned out to be false and/or misleading.
During the class period, Workhorse Group touted its potential to obtain the USPS contract, speculated that its all-electric vehicle “is probably the perfect vehicle for them,” and noted that the contract “would be transforming for the company.” The contract was thought to be worth approximately $6.3 billion. Workhorse Group was vying for the USPS’s Next Generation Delivery Vehicle project, a competitive multiyear acquisition process for replacing approximately 165,000 package delivery vehicles. (WKHS) Misled Shareholders About Its Ability to Obtain a Delivery Vehicle Contract With the USPS Tim Ryan of Ohio has called for an investigation into the contract.Workhorse Group, Inc. Oshkosh plans to build the trucks in South Carolina. USPS selected Oshkosh to build the NGDV in February. The NGDV will replace many of these vehicles, increase our capacity for handling mail and package volume growth, and will support our carriers with more efficient technologies, greater comfort and security as they deliver daily on behalf of the American people. The Postal Service has one of the world’s largest delivery fleets which includes many vehicles that have been in service for 30 years or more. Preproduction design, tooling, and facility preparation activities are proceeding on schedule with the first NGDVs estimated to appear on carrier routes in 2023. USPS issued this statement to FOX 11 in response: While we do not comment on active litigation, the United States Postal Service is looking forward to the start of vehicle production for our Next Generation Delivery Vehicle (NGDV). The complaint, filed in federal claims court asks the judge to invalidate the Oshkosh contract and award it to Workhorse instead.
#Workhorse group usps driver
The amount of money Workhorse needs to improve its prototype is redacted.įinally, the complaint alleges that a testing incident that injured a driver was a result of operator error, not a design flaw in Workhorse's vehicle. The complaint also says USPS agreed to pay Oshkosh $482 million to finish developing its concept before any of the trucks were delivered. The complaint also argues that the vehicle selected for production was "entirely different" from the prototype Oshkosh initially offered. The complaint says the delivery industry is moving toward all-electric vehicles, which it contends are cheaper to operate in the long run. It contends that USPS awarded the contract to Oshkosh even though Oshkosh's plan included some vehicles with internal combustion engines. filed last month in federal court has been unsealed.
0 kommentar(er)
