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Lordstown Motors ex-CEO sold shares day before GM said it exited stake -filing -Breaking

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© Reuters. FILEPHOTO: This sign for Lordstown Motors can be seen in front of the Lordstown Assembly Plant (Ohio), U.S.A, June 21, 2021. REUTERS/Rebecca Cook//File Photo

(Reuters) – On February 28, Lordstown Motors Corp’s former chief executive sold $13.5million worth of shares to the startup. This was a day after General Motors Co (NYSE) announced it had sold its stake.

Steve Burns, who sold almost 5.3 million Lordstown shares on Monday according to a Wednesday file with the U.S. Securities and Exchange Commission. The filing was made one day before GM stated that it had sold 7.5million Lordstown shares through a series sales during the fourth quarter.

Lordstown refused to comment. Burns had two lawyers who did not immediately reply to the request. Burns couldn’t be reached for comment.

According to Refinitiv data, Burns was Lordstown’s founder in 2018, and he retired in June 2021.

Burns owns almost 38 million Lordstown shares, valued at $93million as of Wednesday’s closing price.

Burns had already sold approximately $18.8 million worth of Lordstown shares, and had just completed 3.2 million in November.

Following an investigation conducted by Hindenburg Research (a short-seller), Lordstown claimed that Lordstown had misled investors about the demand for its cars and company production capabilities. He resigned his role as CEO in June.

Lordstown later admitted that it overstated pre-orders of electric trucks from the company, but denied Hindenburg’s allegations it overstated its viability and misled investors regarding production plans.

Lordstown shares fell more than 80 percent since last March’s Hindenburg Report.

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