Mullen Settled With Investors Over Missing EV Production – Here's How to Get Your Share

Court: C.D. California

Case: 2:22-cv-03026

Mullen Automotive MULN has agreed to pay $7.25M to settle a lawsuit brought by investors who say the company hid information about its true EV production capabilities and high-profile partnerships.

The settlement brings closure to years of controversy surrounding the EV startup’s bold—but misleading—promises.

What Really Happened With Mullen’s EV Push

It all started with big ambitions. Back in June 2020, Mullen announced a merger with Net Element, claiming it was ready to roll out the sleek Dragonfly K50 sports car and other electric models. Over the next year, the company made repeated claims about cutting-edge battery tech, ambitious production goals, and key partnerships—including one with Qiantu Motors.

But in April 2022, short-seller Hindenburg Research released a report calling Mullen’s claims “unfounded” and exposing inconsistencies in its story. Hindenburg alleged that Mullen exaggerated its production readiness and even used stock images to misrepresent its manufacturing capabilities. After that, the stock dropped 10%.

Investors Push Back—and Get Results

The revelations sparked a lawsuit from investors. Many claimed they were misled into believing the company was much further along than it actually was. They argued that Mullen artificially inflated its stock price by hyping up technology and partnerships that didn’t exist—or weren’t nearly as advanced as portrayed.

The Deal That Finally Closed the Chapter

Now, with the $7.25M settlement on the table, affected shareholders have a chance to recover some of their losses. Even though the original deadline has passed, claims are still being accepted. If you held Mullen stock during this period, it might be worth checking if you’re eligible. You can find the latest updates and submit your claim here.