Class Action Lawsuits Plaque Volta, Inc. – Ticker VLTA

Volta Inc. is being plagued with class-action lawsuits by multiple firms

(STL.News) A waive of attorneys has begun filing class-action lawsuits against the Company, which they have not disclosed on the Investor Relations section of their website that we could find.  ClassActionDaily.com announced the investigation by the law firm, followed by the filing of the class-action lawsuit yesterday, with other firms following.

What is this Case About?  Volta Inc. (VLTA) Had Material Weaknesses in Internal Controls Leading to a Material Error in its Financial Results

According to the complaint, on August 26, 2021, Volta Industries, Inc. and Tortoise Acquisition Corp. II, a special purpose acquisition company, completed a business combination creating Volta Inc.  On February 25, 2022, Volta filed a Form 8-K with the SEC stating that its Audit Committee determined its third-quarter 2021 financial statements would be restated.  The Company downplayed the impact of the restatement and assured investors the understatements were unintentional.

However, those statements were false.  Defendants failed to disclose to investors that there were material weaknesses in the Company’s internal control over financial reporting.  As a result, Volta had improperly accounted for restricted stock units issued in connection with the business combination and therefore understated its net loss for third-quarter 2021, requiring it to restate its financial statements.  On March 2, 2022, Volta revealed the true impact of the restatement: “an approximate $26.7 million increase to stock-based compensation and corresponding increase to paid-in capital, resulting in an approximate net loss for the three and nine months ended September 30, 2021, of $69.7 million and $155.5 million, respectively.” On this news, the Company’s stock price fell 2.6% on March 3, 2022.

On March 28, 2022, Volta announced its founders had resigned as CEO and President and from the Board of Directors of the Company.  In connection with their resignations, they were converging their Class B shareholdings and equity awards to Class A stock.  The Company’s share price fell 18% to close at $3.37 per share on March 28, 2022.

About Volta Inc.

Volta Inc. (NYSE: VLTA) is a leading global EV charging network, powering vehicles and commerce.  Volta Charging’s vision is to build EV charging networks that capitalize on and catalyze the shift from combustion-powered miles to electric miles by placing stations where consumers live, work, shop, and play.  By leveraging a data-driven understanding of driver behavior to deliver EV charging solutions that fit seamlessly into drivers’ daily routines, Volta Charging’s goal is to benefit consumers, brands, and real-estate locations while helping to build the infrastructure of the future.  As part of Volta Charging’s unique EV charging offering, its stations allow it to enhance its site hosts’ and strategic partners’ core commercial interests, creating a new means for them to benefit from the transformative shift to electric mobility.