Electric Car Co.'s $2.4B Deal Was Built On Lies, Investor Says

By Lauren Berg (April 5, 2021, 9:26 PM EDT) -- In the midst of its $2.4 billion merger with blank-check company Hennessy Capital, electric car maker Canoo waited until after the market closed to tell investors it was changing its business focus, causing its stock to plummet, according to a proposed class action filed Friday in California federal court.

In December, Los Angeles-based Canoo Holdings Ltd. went public in a merger with Hennessy Capital Acquisition Corp., but didn't tell investors it was turning its focus away from the plan to sell vehicles through a subscription model and that it was de-emphasizing its engineering services business, according to the complaint filed by...

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