Robbins Geller Rudman & Dowd LLP, a leading securities litigation firm, has announced the filing of a class action lawsuit against Proterra Inc. (PTRA) and certain top executive officers. The lawsuit alleges violations of the Securities Exchange Act of 1934 during the period between August 2, 2022, and March 15, 2023. Investors who suffered significant losses during this period have until September 12, 2023, to seek appointment as lead plaintiff in the Proterra class action lawsuit.

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Case Allegations

Proterra is a prominent company known for designing and manufacturing zero-emission electric transit vehicles and solutions. On August 2, 2022, Proterra's Chief Financial Officer, Karina Franco Padilla, emphasized the company's robust financial position, stating that they had the necessary resources to navigate potential economic turbulence.

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The Proterra class action lawsuit claims that throughout the Class Period, Proterra and its executives made false and/or misleading statements or failed to disclose crucial information. Specifically, the lawsuit alleges that Proterra repeatedly represented its $523 million cash balance as a sign of abundant liquidity and financial stability. Additionally, the lawsuit contends that Proterra misled investors by stating that the new factory in Greer, South Carolina, would enhance production efficiency and gross margins.

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March 15, 2023 Announcement

On March 15, 2023, Proterra disclosed disappointing financial results for the fourth quarter of 2022, reporting a net loss of $81 million and a gross loss of $20.3 million. Moreover, Proterra revealed that its Form 10-K annual report would likely contain a going concern qualification, which would constitute a default event under the company's debt agreements. Proterra further disclosed that it had obtained a limited waiver for violating a minimum liquidity event in its convertible notes. Following this news, Proterra's stock price plummeted by over 53%, causing substantial harm to investors.

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The Lead Plaintiff Process

Under the Private Securities Litigation Reform Act of 1995, any investor who purchased or acquired Proterra securities during the Class Period can seek appointment as lead plaintiff in the Proterra class action lawsuit. The lead plaintiff represents all other class members and has the authority to select a law firm to handle the litigation. It is important to note that an investor's eligibility to share in any potential recovery is not dependent on serving as the lead plaintiff.