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Nov. 8, 2021, 1:48 p.m. EST

Workhorse discloses it was 'orally informed' of DOJ probe, but has not been subpoenaed

Workhorse Group Inc. (NAS:WKHS) disclosed in a filing with the Securities and Exchange Commission that it has been "orally informed" last week by the U.S. Department of Justice that it was the subject of a DOJ investigation, related to an SEC probe. Meanwhile, the stock bounced 4.8%, after falling 15.7% over the previous three sessions, amid a broad rally in electric vehicle-related stocks in the wake of the passage of the infrastructure bill. The SEC had recently asked the electric van maker to "voluntarily provide information" related to trading in its stock leading up to the announcement of the U.S. Postal Service award of a vehicle order, and to the recognition of any revenue related to purchases of vehicles by a certain customer. Workhorse said it has not received a subpoena from the DOJ, and said it was cooperating with the SEC and DOJ investigations. Separately, the company said its previous statements related to the C-1000 vehicles' compliance with National Highway Traffic Safety Administration (NHTSA) standards "cannot be relied upon." The company said it is cooperating with the NHTSA to execute the recall of 41 C-1000s already delivered to customers -- it also suspended deliveries of C-1000s -- to address Federal Motor Vehicle Safety Standards (FMVSS) issues. Workhorse's stock has shed 32.0% over the past three months, while the S&P 500 (S&P:SPX) has gained 6.0%.

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