Complaints against Lion Électrique have surged, with around twenty filed with the Autorité des marchés financiers (AMF) amid the company’s significant debt exceeding $700 million. The AMF is reviewing these confidential complaints, while investors express frustration over perceived mismanagement. Despite allegations of a lack of transparency, Lion Électrique maintains compliance with disclosure regulations. The situation has led to substantial layoffs, affecting many employees, including a retiree who lost a significant investment.
Rise of Complaints Against Lion Électrique
Recent reports indicate that approximately twenty complaints have been lodged with the Autorité des marchés financiers (AMF) regarding Lion Électrique, a company currently facing debts exceeding $700 million. This alarming situation has raised concerns among small investors and the general public alike.
Insights from the AMF and Investor Reactions
AMF spokesperson Sylvain Théberge confirmed, “Since the return from the holidays, we have received about twenty complaints related to the Lion Électrique case. We will analyze these complaints as part of our established complaint handling process.” He emphasized that the complaint process is confidential, and the AMF will not disclose any specifics regarding the nature of these complaints or confirm ongoing investigations.
Quebec’s investment in Lion, a manufacturer based in Saint-Jérôme specializing in electric buses and trucks, amounts to over $135 million. The company has been insolvent since last month, leading to mass layoffs of its workforce, which included over 1,000 employees. Among the affected individuals is a 90-year-old retiree who reportedly lost over $140,000 in his investment. While he refrained from blaming anyone, other investors expressed their discontent. Geneviève Nadeau, an investor, voiced her frustration, stating, “It gives the impression of a company that has been enjoying a trip for years at the expense of taxpayers and investors.”
However, Raphaël Duguay, an assistant professor at Yale School of Management, suggests that it is premature to jump to conclusions. “The existence of 20 complaints does not inherently imply regulatory failures,” he noted, adding that individual investor frustrations could be the driving force behind these complaints.
Lion Électrique has responded to the situation, with spokesperson Patrick Gervais defending the company against claims of a lack of transparency. He questioned, “In what context would we have had a lack of transparency?” Gervais assured that neither the CEO nor any management personnel made any misleading statements. He condemned what he described as “unfounded remarks” and highlighted Lion’s achievements and commitment to innovation in Quebec.
Gervais further asserted, “As a publicly traded company, Lion has complied and continues to comply with its disclosure obligations under applicable securities laws. We reject any allegations suggesting otherwise.”
For those unfamiliar, a complaint to the AMF involves any concerns that arise after a thorough evaluation, such as accusations against a company, reports of potential or actual consumer harm, or requests for corrective measures.