SAN DIEGO & SAN JOSE, Calif.–(BUSINESS WIRE)–Shareholder rights law firm Robbins LLP announces that a purchaser of QuantumScape Corporation (NYSE: QS) filed a class action complaint against the Company and its officers and directors for alleged violations of the Securities Exchange Act of 1934 between November 27, 2020 and December 31, 2020. QuantumScape develops battery technology for electric vehicles and other applications.
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QuantumScape Corporation (QS) Misled Shareholders by Overstating the Viability, Power, and Life of its Solid-State Battery
According to the complaint, on November 27, 2020, QuantumScape went public via a business combination with Kensington Capital Acquisition Corp. A joint press release issued by QuantumScape and Kensington, characterized QuantumScape as “a leader in the development of next generation solid-state lithium-metal batteries for use in electric vehicles.” Throughout the relevant period, QuantumScape touted the success of its battery technology.
On January 4, 2021, Seeking Alpha published an article pointing to several risks with QuantumScape’s solid-state batteries that make it “completely unacceptable for real world field electric vehicles.” The article stated that the battery’s power “will only last for 260 cycles or about 75,000 miles of aggressive driving.” As solid-state batteries are temperature sensitive, “the power and cycle tests at 30 and 45 degrees above would have been significantly worse if run even a few degrees lower.” The article further detailed significant challenges QuantumScape faces. On this new, QuantumScape’s stock plummeted $34.49, or over 40%, to close at $49.96 per share on January 4, 2021.
If you purchased shares of QuantumScape Corporation (QS) between November 27, 2020 and December 31, 2020, you have until March 8, 2021, to ask the court to appoint you lead plaintiff for the class.
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