The United States Postal Service revealed last month that it had chosen Oshkosh Defense to make the next USPS mail truck, which meant that Workhorse, another bidder for the contract, lost. And with that loss came a steep drop in Workhorse’s stock price. Now one investor has sued.
The suit, filed Monday by Sam Farrar in U.S. District Court in California, alleges fraud, and highlights a number of quotes from Workhorse executives ahead of the USPS’s announcement on February 23. The quotes are intended to show that Workhorse led investors on about the possibility of getting all or part of the USPS’s contract for new mail trucks, inflating its stock price as a result.