QuantumScape (QS) $47.5M Investor Settlement

Court: N.D. California

Case: 3:21-cv-00058

QuantumScape (QS) has agreed to settle $47.5M with investors to resolve claims for overstating the quality of their battery technology.

Outline

Back in 2020, the news reported significant flaws in QuantumScape's battery technology, including charge time, and temperature range capabilities. Following this, QS dropped and the company faced a lawsuit from investors.

Timeline

• On January 4, 2021: Seeking Alpha published an article titled "QuantumScape’s Solid-State Batteries Have Significant Challenges".
• After this news, on the same day, QS dropped by 40.84%.
• On January 5, 2021: QuantumScape faced a lawsuit from investors for overestimating the state of their battery’s technology.

Background

In 2020, QuantumScape announced advancements in its battery technology, including battery life, charge time, and scalability. The company stated that the batteries were “faster than either conventional battery or alternative solid-state approaches are capable of delivering”.

Despite these claims, on January 4, 2021, an article titled "QuantumScape’s Solid-State Batteries Have Significant Challenges" was published on Seeking Alpha.

They pointed out that the battery’s power and lifespan were exaggerated and that the batteries were unlikely to properly work in electric vehicles.

On the same day, following the publication of this article, QS fell by 40.84%.

After that, in 2021, QuantumScape was sued by shareholders who claimed the company misled them about the true capabilities and prospects of its battery technology.

What can investors expect now?

QuantumScape (QS) has agreed to settle $47.5M with investors to resolve claims for overstating the quality of their battery technology.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.