Pomerantz Appointed Lead Counsel in Volta Securities Litigation

On November 25, 2022, U.S. District Judge Jon S. Tigar of the Northern District of California appointed Pomerantz LLP as Lead Counsel on behalf of Steve Padget – the Lead Plaintiff, and the class, in Kampe v. Volta Inc., 22-cv-2055 (N.D. Cal.). This securities class action alleges that Volta Inc. (“Volta” or the “Company”) misled the market regarding the accuracy of its financial reporting and strength of its financial results.

Volta owns and operates a network of electric vehicle (EV) charging stations across the United States. The Company was formed as a result of a business combination in August 2021 between Volta Industries, Inc. (“Legacy Volta”) and Tortoise Acquisition Corp. II, a special purpose acquisition company (the “Business Combination”).

Allegations against Volta include that: (i) the Company had improperly accounted for restricted stock units issued in connection with the Business Combination; (ii) as a result, Volta’s third quarter 2021 net losses were understated; (iii) the Company’s internal control over its financial reporting had material weaknesses that resulted in a material error; (iv) as a result of the foregoing, Volta was required to restate its financial statements; (v) as a result of the foregoing, Legacy Volta’s founders exited the Company; and (vi) as a result, Volta’s financial results were adversely impacted.

The truth began to emerge on March 2, 2022, when Volta revealed that the financial impact of the restatement of its third quarter 2021 financial results was greater than previously disclosed, expecting to report a net loss of $69.7 million for the quarter. On this news, the Company’s share price fell 2.6%.

On March 21, 2022, Volta announced that it would reschedule its fourth quarter and full year 2021 financial results, which had been scheduled to be released that day. On this news, the Company’s share price fell 8.4%.

Then, on March 28, 2022, Volta announced that its founders, CEO Scott Mercer and President Christopher Wendel, had resigned from their roles and from the Company’s Board of Directors. On this news, the Company’s share price fell 18%.