YOUNGSTOWN, Ohio — The Securities and Exchange Commission announced Thursday it filed charges against the bankrupt Lordstown Motors, claiming it misled investors over sales prospects of the business' electric pickup truck, the Endurance. 

According to the SEC's order, it states Lordstown exaggerated demand for the truck, which the company had stated previously it received more than 100,000 nonbinding pre-orders. The SEC said most of the pre-orders came from companies "that did not operate fleets or intend to buy the truck for their own use." 

The SEC said it also found the company wasn't transparent with its timeline on the Endurance, having failed to account for production delays. The SEC said those delays were partially due to Lordstown Motor's inability to access critical parts. 

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

Overall, the SEC found the company violated some antifraud, proxy and reporting provisions of the federal securities laws. Lordstown Motors did not agree with or deny the SEC's findings and has agreed to a cease-and-desist order. The company will give up $25.5 million, which the SEC said will be deemed "satisfied by payments of up to $25.5 million by Lordstown and other defendants to resolve certain pending class actions against them."

Founded in 2019, Lordstown Motors went bankrupt in 2023. Earlier this year, the SEC also filed a $45 million claim against the company for security violations.