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SAN DIEGO, Nov. 11, 2024 (GLOBE NEWSWIRE) — Robbins LLP reminds investors that a class action was filed on behalf of all persons and entities that purchased or otherwise acquired Lilium N.V. (NASDAQ: LILM) securities between June 11, 2024 and November 3, 2024. Lilium is a start-up aviation company engaged in the research and development of an electric vertical takeoff and landing jet.
For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003.
The Allegations: Robbins LLP is Investigating Allegations that Lilium N.V. (LILM) Failed to Disclose its Pending Insolvency to Investors
According to the complaint, during the class period, defendants failed disclose to investors that they: (1) overstated the progress of the Company’s fundraising activities; (2) overstated the likelihood and/or feasibility of obtaining sufficient funding to continue operations; and (3) failed to sufficiently disclose the imminent insolvency of the Company and its subsidiaries.
Plaintiff alleges that on October 24, 2024, before the market opened, Lilium disclosed that it had been unable to raise sufficient additional funds to continue the operations of the Company’s principal operating wholly owned German subsidiaries. As a result, the managing directors of the subsidiaries determined that they are overindebted and are, or will, become unable to pay their existing liabilities. The Company disclosed that, subject to certain limited exceptions, the Company will lose control of the subsidiaries. On this news, Lilium’s stock price fell $0.33, or 61.6%, to close at $0.21 per share on October 24, 2024. The Company’s stock price continued to fall in the subsequent trading day, falling $0.06, or 28.8%, to close at $0.15 per share on October 25, 2024.
The complaint further alleges that on November 4, 2024, before the market opened, the Company reported that, following the insolvency of the Company’s subsidiaries, Lilium had not been able to raise sufficient additional funds to conduct its ongoing business consistent with past practice. The Company disclosed that “funding for the Company is not feasible.” As a consequence, the Company would be “obliged to file for insolvency.” On this news, Lilium’s stock price fell 15.5%, to close at $0.083 per share on November 4, 2024. The Company’s stock price continued to fall in the subsequent trading day, falling 36.97%, to close at $0.052 per share on November 5, 2024.
What Now: You may be eligible to participate in the class action against Lilium N.V. Shareholders who want to serve as lead plaintiff for the class must submit their application to the court by January 6, 2025. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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