Mullen Automotive (NASDAQ:MULN), a California-based electric vehicle company, has seen its stock price recover by over 20% following a significant dip due to an announcement of a reverse stock split in December. The company is currently embroiled in a lawsuit against TD (TSX:TD) Ameritrade, Charles Schwab (NYSE:SCHW), and National Finance Services, accusing them of alleged manipulation of MULN stock price. The case is being overseen by Judge Analisa Torres with legal representation provided by Warshaw Burstein and Christian Attar law firms.
Alan Pollack, an attorney from Warshaw, highlighted the unique legal issues surrounding broker-dealer market manipulation. This comes as Mullen prepares for a special shareholder meeting scheduled for December 15, where a reverse split ranging from 1-for-2 to 1-for-100 will be proposed. The aim of this split is to maintain the $1 share price required by NASDAQ.
In the meantime, the NASDAQ committee continues to deliberate on the issue of Mullen's potential delisting. The company's low share price since going public through a reverse merger is attributed to stock dilution, despite positive movements in Dow Jones, NASDAQ Composite, and S&P 500 indices.
On the product front, Mullen distributes its Mullen One delivery van in partnership with Randy Marion Automotive Group. It also reaches European markets with the Mullen-GO Commercial Urban Delivery EV, facilitated through an agreement with a Chinese manufacturer. Looking ahead, Mullen plans to roll out its Mullen FIVE EV crossover by late 2024 or early 2025.
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