#United States #New York #Lilium N.V. #Securities Law #Faruqi & Faruqi

Investigation of Lilium N.V. by Faruqi & Faruqi, LLP

Faruqi & Faruqi, LLP, a prominent national law firm specializing in securities litigation, is currently investigating claims related to Lilium N.V., a company listed on NASDAQ under the ticker symbol LILM. The firm is reaching out to investors who incurred losses exceeding $50,000 between June 11, 2024, and November 3, 2024, urging them to discuss their legal options.

The impending deadline of January 6, 2025, is significant as it marks the last date for investors to apply for lead plaintiff status in a federal securities class action against Lilium. This lawsuit stems from allegations that the company and its executives misrepresented crucial information regarding its financial health and fundraising efforts.

Allegations Against Lilium N.V.

The investigation centers on claims that Lilium did not fully disclose the imminent threat of insolvency, exaggerating the success of its fundraising endeavors. Specific assertions include:
1. Overstated Fundraising Progress: Claims that Lilium executives significantly overstated the advances in securing necessary capital, leading investors to believe the company was on a more stable financial path than reality.
2. Misrepresentation of Financial Viability: Allegations that the company's statements regarding its ability to generate sufficient funds for ongoing operations were deceptive.
3. Undisclosed Insolvency Risks: The complaint suggests that Lilium failed to adequately inform stakeholders about the quickly approaching insolvency of its subsidiaries.

On October 24, 2024, Lilium disclosed to the market that it had not successfully raised the additional funds required to maintain its operational subsidiaries based in Germany, reporting that those subsidiaries were overindebted and faced severe liquidity issues. This announcement resulted in a significant drop in Lilium's stock price, plummeting from $0.54 to $0.21, marking a staggering decline of over 61% within a single trading session.

The stock continued its downward trend, closing at $0.15 a day later. Further complications arose on November 4, 2024, when Lilium announced that it could no longer secure necessary funding and would be compelled to file for insolvency. Following this grim news, the stock tumbled to $0.083, representing another decline of approximately 15.5% in a single day.

The Role of Lead Plaintiff

In securities class action lawsuits, the lead plaintiff is selected based on their financial stake in the outcome and their capability to represent the class adequately. Any affected investor can apply to serve in this role or remain a passive member of the class.

Faruqi & Faruqi LLP is also advocating for whistleblowers, former employees, and shareholders to step forward with any pertinent information regarding Lilium's practices.

Those interested in understanding more about this legal situation are encouraged to visit the firm's website or contact Faruqi & Faruqi partner Josh Wilson directly via phone for personalized assistance.

This investigation not only underscores the potential pitfalls of investing in companies with complex fundraising claims but also highlights the importance of due diligence and transparency in the ever-evolving landscape of securities trading. Investors are reminded that their rights and financial interests are paramount, and they should act swiftly to safeguard them before the impending deadline.