CASE OVERVIEW

Between May 7, 2021 and December 15, 2024 inclusive, the directors and officers (“D&Os”), auditors and underwriters (collectively, the “Defendants”) of The Lion Electric Company (“Lion Electric” or the “Company”), published documents that contain misrepresentations and omit to disclose material facts relating to the Company’s financial health, including the quality of Lion Electric’s products, its production capacity, order book, growth and profitability.

The effect of Defendants’ misconduct was to artificially inflate the value of Lion Electric’s securities. As a result, members of the proposed class acquired Lion Electric’s securities at artificially inflated prices that did not reflect their true value.

When the entire truth emerged on December 16, 2024, the value of Lion Electric’s securities plummeted, resulting in a loss to the members of the proposed class.  

The proposed class action seeks to obtain a judgment ordering the Defendants to pay damages to each member of the proposed class.  

MEMBERS OF THE PROPOSED CLASS

You are a member of the proposed class under civil law dispositions if you acquired one or more of Lion Electric’s securities on a primary or secondary market between May 7, 2021 and December 15, 2024, inclusive.

You are a member of the proposed class under Québec’s Securities Act dispositions if you acquired one or more of Lion Electric’s securities on a primary or secondary market between February 22, 2024 and December 15, 2024, inclusive. 

CASE STATUS

On February 21, 2025, an Application for Authorization to Institute a Class Action and for Authorization to Bring an Action for Damages under article 225.4 of the Securities Act (the “Application for Authorization”), CQLR c V-1.1 was filed before the Superior Court of Québec.  

On March 13, 2025, the Plaintiff filed a de bene esse motion which sought, in the alternative, a temporary lift of the stay period for the sole purpose of allowing the Plaintiff to retroactively file the Application for Authorization. On May 2, 2025, the Plaintiff informed the Court that he reached an agreement with Lion Electric regarding the de bene esse motion. Specifically, the parties agreed on a without prejudice and without admission basis, to the alternative relief sought therein.

On May 15, 2025, Lion Electric filed an Application for the Issuance of an Approval and Reverser Vesting Order, which sought, among other things, a complete and total liability release on behalf of its D&Os. The Plaintiff objected to such a release. On November 17, 2025, the Court held that the Plaintiff’s objection should prevail and rejected Lion Electric’s request for a D&O liability release.

The class action is currently at the authorization stage.

PROCEEDINGS AND JUDGEMENT

• Application for Authorization to Institute a Class Action and for Authorization to Bring an Action for Damages under article 225.4 of the Securities Act (in French only).
• De bene esse Motion for Declaratory Judgment and Alternative Nunc Pro Tunc Relief for Partial and Limited Lifting of the Stay of Proceedings Against the Impleaded Parties/Respondents
• Order Lifting of the Stay of Proceedings On A Partial and Limited Basis
• Judgment on Application for the Issuance of an Approval and Reverse Vesting Order (SEQ.55) and Approval of Paragraphs 61 and 62 of the Rectified Approval and Reverse Vesting Order Dated June 6, 2025