GreenCarNewsBreaks — Mullen Automotive Inc. (NASDAQ: MULN) Releases Update on Stock Buyback Program, File Suit Against Schwab, TD Ameritrade for Naked Short Selling
Mullen Automotive (NASDAQ: MULN), an emerging electric vehicle (“EV”) manufacturer, is reporting on its stock buyback program. The buyback program started on Aug. 16, 2023, and could go through Dec. 31, 2023. According to the announcement, the company has repurchased $5,610,600 in shares of its Mullen’s original announcement on Aug. 17, 2023. MULN’s board of directors approved the stock buyback program in July; approval allows the company to purchase up to $25 million in shares. The shares may be repurchased in the open market or in privately negotiated transactions. “As I have stated on many prior occasions, I believe that our stock is undervalued,” said Mullen Automotive CEO and chair David Michery in the press release. “The company has a strong balance sheet, and we continue to execute on our business plan, including our recent Class 3 production start with the first vehicles rolling off the line.”
In addition, Mullen announced that it has filed a lawsuit charging that brokerages TD Ameritrade and Charles Schwab facilitated naked short selling that has damaged the company’s stock price. According to the announcement, Mullen suspects the brokerage firms and around 10 individual unidentified broker dealers illegally sold more than 34 million “fictitious” company shares and “fully paid for” stock owned by Mullen shareholders then sold those shares without actually borrowing them in the first place. The lawsuit charges that the “conduct injected false and misleading information into the market by indicating that there were more Mullen shares available for trading than existed.” According to the announcement, Mullen shares began dropping in February and are down 99% year-to-date. A spokesperson for Schwab said the company was aware of the lawsuit but hadn’t yet reviewed it; Fidelity declined to comment. Mullen alleges the unlawful trading took place after the company executed a 25-to-1 reverse split in May, which led to a reduction of the 3.7 billion shares outstanding to 152 million shares. The company is seeking unspecified damages as compensation. The complaint was filed by law firm Warshaw Burstein. “Companies have duties and obligations to their shareholders to monitor whether their company is being targeted and to take appropriate legal steps to protect the value of their shareholders equity,” said Warshaw Burstein partner Alan M. Pollack in the press release. “Mullen is one of those companies that understands its obligations and is doing something about it.”
About Mullen Automotive Inc.
Mullen Automotive is a Southern California-based automotive company building the next generation of electric vehicles (“EVs”) that will be manufactured in its two United States-based assembly plants. Mullen’s EV development portfolio includes the Mullen FIVE EV Crossover; the Mullen GO Commercial Urban Delivery EV; the Mullen commercial class 1–3 EVs; and Bollinger Motors, which features both the B1 and B2 electric SUV trucks and class 4–6 commercial offerings. On Sept. 7, 2022, Bollinger Motors became a majority-owned EV truck company of Mullen Automotive, and on Dec. 1, 2022, Mullen closed on the acquisition of Electric Last Mile Solutions’ (“ELMS”) assets, including all IP and a 650,000-square-foot plant in Mishawaka, Indiana. To learn more about the company, visit www.MullenUSA.com.
NOTE TO INVESTORS: The latest news and updates relating to MULN are available in the company’s newsroom at https://ibn.fm/MULN
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