Solid-state battery firm QuantumScape must face a securities lawsuit by investors who feel they were misled over the viability of the company’s technology.
Investors adequately alleged that QuantumScape made “false and misleading” statements about the conditions under which its batteries were tested and how these batteries stood up to conventional batteries, reported Bloomberg Law.
Judge William H. Orrick of the U.S. District Court for the Northern District of California allowed the case on 14 January.
The California District judge stated the allegations were “sufficient to state a claim, and adequately alleged scienter and loss causation”, according to legal news service Law360.
The law offices of Frank R. Cruz announced an investigation of QuantumScape on 4 January, 2021 on behalf of investors concerning the company’s possible violations of federal securities laws following a 41% stock price fall.
The company’s stock price tumbled last year following a report on Seeking Alpha website by Dr Brian Morin, CEO of Soteria Battery Innovation Group, that questioned the technology’s capabilities.
Amy Scarlett, director of communications at QuantumScape told BEST: “As we have stated before, we believe the suit is without merit. Aside from that, we don’t comment on litigation.”
Multi-year agreement
QuantumScape and Fluence Energy have entered into a multi-year agreement to introduce solid-state lithium-metal battery technology to stationary energy storage applications.
The companies will collaborate on a solution that incorporates QuantumScape’s battery technology into Fluence’s stationary energy storage products as specific technical and commercial milestones are met.
Jagdeep Singh, co-founder and CEO of QuantumScape, said: “While we have historically focused on automotive applications, we believe our battery technology is broadly applicable and can play a role in other sectors contributing to a lower-carbon future.”
