- Cenderelli v. Archer Aviation, Inc., et al.
- Class Period:September 17, 2021 - August 15,2023
- Date Filed:September 21, 2023
- Jurisdiction:U.S. District Court, Northern District of California
- Docket Number: 3:23-cv-04844
- Lead Plaintiff Deadline: November 20, 2023
Seek Plaintiff 0
A class action lawsuit, captioned Cenderelli v. Archer Aviation, Inc., et al., has been filed against Archer Aviation, Inc. (“Archer” or the “Company”) (NYSE: ACHR) and certain of its top current and/or former executive officers alleging violations of federal securities laws. The lawsuit seeks to represent purchasers or acquirers other than Defendants that purchased or otherwise acquired Archer securities between September 17, 2021, and August 15, 2023, both dates inclusive (the “Class Period”).
Archer purports to design and develop electric vertical takeoff and landing (“eVTOL”) aircraft for use in urban air mobility networks. Archer’s shares began publicly trading on the New York Stock Exchange in September 2021 when it entered into a business combination with Atlas Crest Investment Corp., a special purpose acquisition company (“SPAC”).
Since its inception, Archer has consistently touted the efficacy of its eVTOL aircraft design and flight-testing procedures, the profitability of its business partnerships, and its ability to secure from the Federal Aviation Administration (“FAA”) the necessary regulatory certification for the mass production of aircraft for commercial use.
Indeed, the Company has stated that it “optimize[s] [its] eVTOL aircraft design for both manufacturing and certification by using advancements in key enabling technologies” and has “secured and strengthened excellent relationships with global leaders and innovators, such as United Airlines, Stellantis, Reef, and the [U.S.] Air Force.” Moreover, the Company claims that “by bringing together a mix of talent with both eVTOL and traditional commercial aerospace backgrounds, [it is] building a team that will allow [it] to move through the design, development, and certification of [its] eVTOL aircraft with the [FAA] in an efficient manner.”
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company relied on heavily edited videos of earlier flights to exaggerate the amount of flight testing it had actually performed and the sophistication of its eVTOL aircraft; (ii) the Company had misrepresented the nature and profitability of its business partnerships, (iii) the Company was unlikely to secure FAA certification in the timeframe it had represented to investors, thereby delaying the start of mass production of its aircraft for commercial sales; (iv) accordingly, the Company had overstated its financial position and/or prospects; (v) all of the foregoing, once revealed, was likely to subject the Company to significant financial and/or reputational harm; and (vi) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On August 16, 2023, before the market opened, Grizzly Research released a report on Archer (the “Grizzly Report”). The Grizzly Report alleged, among other issues, that Archer, relies on heavily edited videos of earlier flights to misrepresent the amount of flight testing the Company has actually performed, and to misrepresent the sophistication of Archer’s eVTOL aircraft.
Further, the Report alleged that investigators who had spoken to former Archer employees, and businesses in close proximity to its flight-testing facilities who witness its flights, confirmed that Archer conducts far fewer flights than the Company has claimed. Finally, the Grizzly Report also alleged that Archer has misrepresented the timelines for (i) its lab and manufacturing facility in San Jose, California, becoming operational, and (ii) securing FAA certification of its prototype aircraft.
On this news, Archer’s stock price fell $0.41 per share, or 6.46%, to close at $5.94 per share on August 16, 2023.
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If you purchased or otherwise acquired Archer common stock and/or securities between September 17, 2021 and August 15, 2023, both dates inclusive and suffered substantial losses, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at firstname.lastname@example.org.
The deadline to submit an application with the Court to serve as a lead plaintiff in the Archer lawsuit is November 20, 2023.