Several top executives at Lordstown Motors Corp. sold off chunks of stock in the electric-truck startup ahead of reporting financial results, according to regulatory filings disclosing the transactions.
Securities lawyers and accountants say such trades raise questions about the company’s internal controls, especially in light of its recent troubles.
In all, five top executives, including the company’s president and its former chief financial officer, sold more than $8 million in stock over three days in early February, according to the filings.
Don’t miss: Lordstown stock plunges over 20% after CEO and CFO resign.
Also read: Lordstown stock plummets after electric-truck company warns about financial position.
Lordstown Motors RIDE, +3.30% , which went public in October and plans to build electric trucks at a former General Motors Co. plant in Ohio, reported year-end results for the first time as a listed company in mid-March. Its net loss of 23 cents a share for the quarter was more than double analysts’ expectations, according to FactSet. The two-year-old startup has yet to begin production on its first model, a battery-powered pickup called the Endurance that is aimed at commercial buyers, such as businesses and fleet operators.
An expanded version of this report appears at WSJ.com.
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