Archer Aviation Faces Securities Investigation, Prompting Investor Vigilance
Archer Aviation Inc. (“Archer” or the “Company”) (NYSE: ACHR) is currently under investigation by Faruqi & Faruqi, LLP, a leading national securities law firm. The investigation stems from potential claims against Archer regarding alleged false and misleading statements made by the Company during the Class Period, which lasted from September 17, 2021, to August 15, 2023.
Investors who purchased or acquired securities in Archer stock or options during this period are encouraged to be aware of their legal rights. Faruqi & Faruqi partner, Josh Wilson, is available to discuss the matter and can be reached directly at 877-247-4292 or 212-983-9330 (Ext. 1310). Additionally, interested parties can find more information at www.faruqilaw.com/ACHR. It’s important to note that there is no cost or obligation associated with seeking legal advice.
Faruqi & Faruqi, LLP, a leading minority and woman-owned national securities law firm, is committed to investigating potential claims against Archer. With offices in New York, Pennsylvania, California, and Georgia, the firm aims to protect investors’ interests and ensure fair practices in the financial markets.
The complaint against Archer alleges that the Company made materially false and misleading statements regarding its business, operations, and compliance policies throughout the Class Period. Specifically, the complaint asserts that Archer relied on heavily edited videos of earlier flights to exaggerate the amount of flight testing it had conducted and the sophistication of its eVTOL aircraft. It further claims that the Company misrepresented the nature and profitability of its business partnerships and was unlikely to secure FAA certification within the represented timeframe, thereby delaying mass production of its aircraft for commercial sales. These alleged actions resulted in an overstatement of Archer’s financial position and prospects, potentially subjecting the Company to significant financial and reputational harm.
On August 16, 2023, Grizzly Research released a report (the “Grizzly Report”) that raised concerns about Archer’s practices. The report alleged that Archer misrepresented the amount of flight testing it had performed by relying on heavily edited videos and that the Company conducted far fewer flights than claimed. Additionally, the Grizzly Report questioned Archer’s timelines for its lab and manufacturing facility in San Jose, California, becoming operational and securing FAA certification for its prototype aircraft.
Following the release of the Grizzly Report, Archer’s stock price experienced a decline of $0.41 per share, or 6.46%, closing at $5.94 per share on August 16, 2023.
While the investigation is ongoing, it is crucial for investors to remain vigilant and stay informed about the developments surrounding Archer Aviation. The court-appointed lead plaintiff, representing the investor with the largest financial interest in seeking relief on behalf of the class, will oversee the litigation. However, any member of the putative class has the opportunity to move the Court to serve as lead plaintiff through their chosen counsel or remain an absent class member without affecting their ability to share in any potential recovery.
Faruqi & Faruqi, LLP encourages anyone with information regarding Archer’s conduct to come forward, including whistleblowers, former employees, shareholders, and others. The law firm treats all communications in a confidential manner and welcomes discussions about individual cases.
It is important to note that this article is based on the press release and should not be considered as financial or legal advice. The law firm responsible for this investigation is Faruqi & Faruqi, LLP, and their prior results do not guarantee or predict similar outcomes in future matters.
In conclusion, the ongoing investigation into Archer Aviation highlights the importance of transparency and accountability in the securities market. Investors are urged to stay informed and seek legal counsel if they believe their rights may have been compromised.