A proposed class action lawsuit in New York alleges that Northern Genesis, the financial firm that helped the Quebec electric bus- and truck- maker go public as a special purpose acquisition company (SPAC) in 2021, used deceptive “risk factor” statements and unrealistic financial projections in its disclosures before the offering. The class has not been certified by the court, according to the Rosen Law Firm, which is representing the lead plaintiff. (Le Journal de Montréal, The Logic)

Talking point: As many SPAC stocks languish below their go-public prices, shareholders are trying their cases in court, with mixed success. In the case of Northern Genesis’s SPAC, the complaint alleges that Lion understated its supply chain issues and entered sale agreements for vehicles it had not yet prototyped. Patrick Gervais, Lion Electric’s vice president of public affairs, declined to comment on the allegations against Northern Genesis while it is before the court. The New York case was filed in March, according to online records database PACER. On July 1, judge Jennifer Rochon set a July 15 deadline for the parties to submit a joint schedule for filing an amended complaint or briefing on a motion to dismiss the case.