Investors in Archer have filed a US lawsuit claiming that the eVTOL developer has made “materially false and/or misleading statements” about its progress towards commercial entry.
The securities class action seeks to recover losses on behalf of Archer investors. It was filed on September 21st, 2023 and emerged publicly on Tuesday, after being confirmed by the investors’ representatives. The litigation alleges Archer “consistently touted the efficacy of its eVTOL aircraft design and flight testing procedures, the profitability of its business partnerships, and its ability to secure from the FAA the necessary regulatory certification for the mass production of aircraft for commercial use,” the Shareholders Foundation reported.
The news did not significantly hit Archer’s share price and it closed at $4.82 on Tuesday, down from $5.07 the previous close. It has since regained and ended yesterday on $5.01. Just over a month ago it was trading at $7.22. Its closest rival Joby is trading at $6.47 down from $7.47 a month ago.
Claims against Archer between September 17th, 2021, and August 15th, 2023, included:
- Archer relied on heavily edited videos of earlier flights to exaggerate the amount of flight testing it had actually performed and the sophistication of its eVTOL aircraft
- Archer had misrepresented the nature and profitability of its business partnerships
- Archer was unlikely to secure FAA certification in the timeframe it had represented to investors, thereby delaying the start of mass production of its aircraft for commercial sales.
Those with shares in Archer between the dates stated in the claim who wish to look at their options are being invited to do so by November 20th, 2023.
