Investigations and Bankruptcy Filings: Party City and Lordstown Motors Face Legal Challenges

Party City Holdco Inc. is facing a federal securities class action lawsuit alleging false and/or misleading statements about liquidity problems and credit facility shortfall. The company filed for Chapter 11 bankruptcy and admitted to a material weakness in internal control over financial reporting. Lordstown Motors, a bankrupt electric vehicle manufacturer, is proposing to pay nothing for Taiwan's Foxconn's preferred equity shares. The company is also facing a class action securities lawsuit alleging false and misleading statements about its relationship with Foxconn. Lordstown Motors is hopeful to find buyers for all or parts of its business in Chapter 11 bankruptcy.