Lordstown Motors has been accused of misleading investors about the sales potential of its electric pickup truck

The Securities and Exchange Commission Accused Lordstown Motors goes bankrupt while misleading investors about the sales prospects of its Endurance electric pickup truck.

Lordstown has agreed to pay $25.5 million as a result, money the SEC says will go toward settling a number of class action lawsuits pending against the company.

“We allege that in a highly competitive race to deliver the first mass-produced electric pickup truck to the U.S. market, Lordstown oversold the real demand for the Endurance,” Mark Keefe, associate director of the SEC’s Enforcement Division, said in a statement. “Exaggerations that misrepresent a public company’s competitive advantages distort capital markets and frustrate investors’ ability to make informed decisions about where to put their money.”

The SEC says its investigation into Lordstown Motors is continuing.

This story develops…