Archer Aviation (NYSE:ACHR) stock is up 1% today despite a recent lawsuit announced against the company. Indeed, on Wednesday, Rosen Law Firm announced a new class-action lawsuit on behalf of Archer shareholders, investigating allegations of misleading business information being given to investors.
What do you need to know about Archer lately?
Well, per the lawsuit filing, earlier this week on Aug. 15, Grizzly Research released a report about Archer’s electric vertical take-off and landing (eVTOL) aircrafts awaiting Federal Aviation Administration (FAA) approval before entering commercial operation. The report allegedly relied on edited, misleading videos of previous flight attempts in order to misrepresent the state of the eVTOL aircraft, suggesting that Archer’s technology is further advanced than in reality. Unfortunately, the day following the report, ACHR stock slipped more than 6%.
Rosen’s lawsuit seeks to offer recovery compensation for investors who lost money in Archer as a result of the alleged misleading information peddled by the company. As such, Rosen encourages investors who lost money in the described situation to fill out an investigation submission form.
ACHR Stock Climbs on Lawsuit, New PIPE Investments
Wednesday’s lawsuit comes just a day following a promising investment for Archer Aviation. Indeed, on Tuesday, the eVTOL company completed a PIPE investment round securing an additional $215 million in funding. At the same time, Stellantis (NYSE:STLA) opted to invest another $55 million into the company.
Much of the recent PIPE investments into Archer come from well-known names like United Airlines (NASDAQ:UAL) and Cathie Wood’s ARK Investment Management.
Adam Goldstein, founder and CEO of Archer Aviation, had some kind words for the latest generous funding round:
“At Archer, we’re investing in changing the future of mobility, and we’re focused on building a sustainable business with huge growth potential. You have to align yourself with investors who understand that and think long-term. I couldn’t be prouder of the investors who participated in this round as they truly understand and embrace that.”
ACHR stock has enjoyed a tremendous year so far. Indeed, the stock is up a staggering 211% year-to-date (YTD), far outpacing the S&P 500 and Nasdaq Composite, which are up 15% and 29% respectively.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
