Nov 8 (Reuters) – Electric van-maker Workhorse Group (WKHS.O) said on Monday it was being investigated by the U.S. Department of Justice and the U.S. Securities and Exchange Commission related to trading in the company’s securities leading up to the award of a U.S. Postal Service (USPS) contract.
While Workhorse was orally informed of the DoJ investigation on Nov. 5, the company had received SEC’s letters in mid-October and earlier this month seeking information related to the issue.
Workhorse disclosed the investigations in a regulatory filing, adding that it has not received any subpoena or request for documents from the DoJ. (https://bit.ly/2YqXzil)
In June, Workhorse had challenged a decision by the U.S. Postal Service earlier this year to award a multibillion-dollar, 10-year contract to Oshkosh Defense to manufacture a new generation of postal delivery vehicles.
The company is also amid a management rejig with two of its top executives, including finance chief Steve Schrader, leaving the company in late September.
Reporting by Akash Sriram in Bengaluru; Editing by Shailesh Kuber