Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Archer Aviation, Inc. (ACHR)

NEW YORK, Sept. 25, 2023 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Northern District of California on behalf of all persons or entities who purchased or otherwise acquired Archer Aviation, Inc. (“Archer Aviation” or the “Company”) (NYSE: ACHR) securities between September 17, 2021 and August 15, 2023, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.

The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company relied on heavily edited videos of earlier flights to exaggerate the amount of flight testing it had actually performed and the sophistication of its electric vertical takeoff and landing (“eVTOL”) aircraft; (ii) the Company had misrepresented the nature and profitability of its business partnerships; (iii) the Company was unlikely to secure Federal Aviation Administration (“FAA”) certification in the time frame it had represented to investors, thereby delaying the start of mass production of its aircraft for commercial sales; (iv) accordingly, the Company had overstated its financial position and/or prospects; and (v) all of the above, once revealed, was likely to subject the Company to significant financial and/or reputational harm.

The Complaint further alleges that on August 16, 2023, Grizzly Research released a report on the Company that alleged “that Archer relies on heavily edited videos of earlier flights to misrepresent the amount of flight testing [Archer Aviation] has actually performed, and to misrepresent the sophistication of Archer’s eVTOL aircraft.” The Complaint also alleges that “the report alleged that investigators who had spoken to former Archer employees, and business in close proximity to its flight-testing facilities who witness its flights, confirmed that Archer conducts far fewer flights than [Archer Aviation] has claimed.” Finally, the Complaint alleges that the Company “has misrepresented the timelines for (i) its lab and manufacturing facility in San Jose, California, becoming operational, and (ii) securing FAA certification its prototype aircraft.” The Archer Aviation class action lawsuit alleges that on this news, the price of Archer Aviation stock fell more than 6%.

Investors who purchased or otherwise acquired shares of Archer Aviation should contact the Firm prior to the November 20, 2023 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

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