Quarterly Update via webinar Today Aug 14

[ricschug]

Curious, if am I the only Evergreen Edition reservationist that thought the meet the Evergreen Editon video was the production ready retail model role out (in the process of certification testing) and the 1/2 doors were ready or close to ready on this Custom Shop Evergreen Edition.  

My impression as well. Only shipments will end all the speculations

[loopy]

Curious, if am I the only Evergreen Edition reservationist that thought the meet the Evergreen Editon video was the production ready retail model role out (in the process of certification testing) and the 1/2 doors were ready or close to ready on this Custom Shop Evergreen Edition.  

I'm not an Evergreen reservation holder but that was my impression also.

[harriska2]

On the Meet the Evergreen page it says Price, options, and specifications are subject to change.


upload images

[Rickb]

I hope when price, options, and specifications do change, it’s for the better, favors everyone involved, and at some point soon locks in and delivers.

[gregbinahurry]

Can anyone explain to me in simple and understandable terms what the Class Action lawsuit is all about?
Did Arcimoto agree to a settlement?  I hope this does not mean bankruptcy.

[Rickb]

This is taken from Arcimoto’s Quarterly Sec filing regarding litigation:



I’m a happy long term Reg A+ investor as Arcimoto inches closer to retail production.

[CharonPDX]

Long story short, from my "I am not a lawyer, but I've dealt with many of them and dealt with many class action lawsuits" perspective:

The lawsuit claims that in the lead-up to the IPO, Arcimoto mis-stated how ready they were for production, concealing material deficiencies that they knew would significantly delay production of the vehicle. (Ironically, when the lawsuit was filed in March 2018, this wasn't very obvious. But it's rather painfully obvious now. Of course, the question at hand is "did Arcimoto know it was going to be this delayed?") The harm is that people bought the stock at IPO pricing assuming the estimate for production of "early 2018" was accurate, then the stock tanked when it became clear that was not tenable.

The reason is going out now is that a tentative settlement has been reached. Presumably Arcimoto would not agree to a settlement that would cause them to go out of business, and presumably those suing wouldn't want that either, as it would turn their shares COMPLETELY worthless.

The actual judge hearing about the settlement isn't until next January. That's when a judge will decide if this settlement is fair to all parties, and put it in force. Most class action settlements are approved by the judges. At "worst," the judge would say that the lawyers are asking for too much money and drop their fee slightly. It is exceedingly rare that a judge either declines the settlement, forcing it to actually go to trial; or significantly modifies the terms of the settlement (has the defendant pay far less or far more) when the settlement was agreed to by both parties.

[gregbinahurry]

Long story short, from my "I am not a lawyer, but I've dealt with many of them and dealt with many class action lawsuits" perspective:

The lawsuit claims that in the lead-up to the IPO, Arcimoto mis-stated how ready they were for production, concealing material deficiencies that they knew would significantly delay production of the vehicle.  (Ironically, when the lawsuit was filed in March 2018, this wasn't very obvious. But it's rather painfully obvious now. Of course, the question at hand is "did Arcimoto know it was going to be this delayed?") The harm is that people bought the stock at IPO pricing assuming the estimate for production of "early 2018" was accurate, then the stock tanked when it became clear that was not tenable.

The reason is going out now is that a tentative settlement has been reached. Presumably Arcimoto would not agree to a settlement that would cause them to go out of business, and presumably those suing wouldn't want that either, as it would turn their shares COMPLETELY worthless.

The actual judge hearing about the settlement isn't until next January. That's when a judge will decide if this settlement is fair to all parties, and put it in force.  Most class action settlements are approved by the judges. At "worst," the judge would say that the lawyers are asking for too much money and drop their fee slightly. It is exceedingly rare that a judge either declines the settlement, forcing it to actually go to trial; or significantly modifies the terms of the settlement (has the defendant pay far less or far more) when the settlement was agreed to by both parties.

Thanks very much for your explanation.  I am and have always been totally supportive of Arcimoto and this vehicle.  My question is that if this 2.4 million is going to be paid out anyways, is it in all of our best interests to collect the 50 cent per share estimated payout?  Does it hurt or affect Arcimoto either way?

[Rickb]

Does anyone know how much or if there will be any payout? Better not to dwell on it, but focus on retail production/delivery and let Arcimoto’s legal team handle it. Little impact in the big scheme of things. I had forgotten about the litigation until you asked the question, now I can’t sleep at night.

[CharonPDX]

The payout is 50 cents per share maximum, depending on total claims. $2.5 million total paid by Arcimoto, 1/3 to the lawyers, the rest to shareholders who bought during IPO who opt in (not including Arcimoto's own legal fees.)

You can see all the documents at http://arcimotosecuritieslitigation.com