LAW FIRM Encourages Energy Vault Holdings, Inc. f/k/a Novus Capital Corporation II Investors with Losses to Inquire About Securities Class Action Investigation

NEWPORT, Calif., May 2, 2022 /PRNewswire/ --

WHY: Hittelman Strunk Law Firm, a securities law firm, announces an investigation of potential securities claims on behalf of shareholders of Energy Vault Holdings, Inc. f/k/a Novus Capital Corporation II (NYSE: NRGV, NRGV-WT) resulting from allegations that Energy Vault Holdings, Inc. may have issued materially misleading business information to the investing public.

SO WHAT: If you purchased Energy Vault Holdings, Inc. securities you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement. The Hittelman Strunk Law Firm is preparing a class action seeking recovery of investor losses.

WHAT TO DO NEXT: To join the prospective class action, go to https://www.hittelmanstrunk.com/ or email info@hittelmanstrunk.com for information on the class action.

WHAT IS THIS ABOUT: SPACs, or special purpose acquisition companies, are commonly known as "blank check" shell companies. SPACs provide an alternative to the traditional IPO process and serve the primary purpose of raising investor proceeds to eventually acquire a private company. 

While SPAC investors have the potential to realize significant gains, they are also much more vulnerable to market volatility and other types of fraud. According to the Wall Street Journal, the SPAC process isn't subject to the same rules about disclosure and marketing practices as standard initial public offerings, and may give companies like Energy Vault Holdings, Inc. more leeway to attract investors with projections of future revenue and profit that may not hold up. 

Investors may be vulnerable to a variety of SPAC fraud by sponsors, including: 

• Misrepresenting material facts related to the SPAC or the company to be acquired; 
• Failing to properly investigate or conduct due diligence on the company to be acquired; or 
• Engaging in self-dealing or failing to disclose conflicts of interest with the acquisition company. 

SPACs have recently come under SEC scrutiny and investor lawsuits against SPACs are on the rise.  According to MarketWatch, many of these lawsuits allege SPAC directors failed to disclose sufficient information about the companies they intended to merge with. As of April 2022, the SEC has proposed new disclosure requirements for SPACs to mitigate these concerns. The Wall Street Journal states that the proposals, if implemented, "would make it harder for SPACs to raise money from investors and execute mergers."

WHY HITTELMAN STRUNK LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually litigate securities class actions. Be wise in selecting counsel. The Hittelman Strunk Law Firm represents investors and concentrates its practice in securities class actions and shareholder derivative litigation.

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SOURCE Hittelman Strunk