Hyzon Motors Inc. (NASDAQ: HYZN)

This is a federal securities class action against Hyzon, a “SPAC”-repackaging of a flailing Chinese hydrogen-fuel-cell business, which allegedly severely embellished its “deals” and “partnerships” with customers, touted illusory customer contracts and financial projections, and attempted to disguise the demand gap for its product by making deals with fake Chinese purchasers.

The truth began to emerge on September 28, 2021, when an activist short seller claimed Hyzon’s largest “customer,” Shanghai HongYun, was a sham Chinese entity formed three days before the deal announcement, had no capital, no physical office or salaried employees, no public corporate backers, and no verifiable business connections, and was incorporated so that Hyzon could fill its projected delivery gap and keep its stock price inflated. Similarly, this investment analyst revealed that Hyzon’s next largest “customer,” Hiringa Energy, was not really a Hyzon customer, but rather, an unpaid “channel partner” with no obligation, intention, or capability to purchase the volume of vehicles Hyzon claimed were “binding orders” in its press releases and public interviews.

In addition, the analyst accused Hyzon of inciting investor interest in its unproven vehicle retrofitting business by touting the names of big household brands like Coca-Cola, Heineken, and other Fortune 500 companies as “top tier customers” and “partners” in its pre-merger investor presentations, which were quietly dropped after other EV SPACs got into trouble for allegedlt falsifying their books of business. Yet despite apparently losing its most prominent customers, supposedly accounting for $700 million in future orders from North America, Europe, and elsewhere, Hyzon’s 2021+ financial projections remained the same.

On this news, Hyzon shares fell $2.58 per share, or 28%, in a single trading day.

Then, on January 12, 2022, the company disclosed (1) that its 2021 financial results would be “materially lower than forecast revenues and margins,” and (2) it had received a subpoena from the SEC demanding information about the issues identified above.

On this news, Hyzon’s stock price dropped $1.55, or nearly 23%, in a single trading day, and continued to drop over the next five trading days.

Hagen Berman’s independent investigation, aided by an investigation firm based in China, has since corroborated the activist short seller findings on Hyzon, its business history, and its sham Chinese purchasers. Additionally, Hagens Berman’s investigation has uncovered new information evidencing the scale of the Defendants’ alleged fraud scheme. These efforts remain ongoing. Persons in possession of inside information about Defendants’ alleged fraud are encouraged to contact the Hagens Berman attorneys for this case immediately.