Lion Electric reaches settlement: what it means for Lion Electric stock

Published on 10/02/2026 at 01:38 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

A CAD 5.70 million settlement awaits court approval. For Lion Electric stock, the payout is USD 4.00 million for pre-merger holders.

LEV, CA5362211040, Illustration mit AI erstellt.

The Lion Electric Company (CA5362211040) is tied to a proposed CAD 5.70 million settlement for investors from its Northern Genesis Acquisition merger, according to Journal de Montreal on September 30, 2026. The agreement would make USD 4.00 million available to investors who held Northern Genesis shares before the merger took effect in May 2021.

Settlement means limited recovery

The settlement still requires court approval, and eligibility is restricted to investors who held the predecessor company's shares before the transaction. Investors who bought shares after the merger are excluded from the distribution, according to Journal de Montreal.

The legal dispute centers on the 2020 combination that brought Lion Electric to the New York and Toronto markets. The claim alleged that Northern Genesis executives overstated Lion's prospects and put their interests ahead of other shareholders, while the defendants deny wrongdoing.

Revenue fell far short of projection

The numbers behind the dispute are stark. In 2020, Lion was presenting a revenue expectation of more than CAD 2.00 billion for 2023, while actual revenue reached only CAD 85.00 million in 2023, according to Journal de Montreal. The company became insolvent at the end of 2024, turning the settlement into a recovery process rather than a conventional operating catalyst.

CCAA case remains on record

Canada's official insolvency register identifies The Lion Electric Company and related entities in CCAA proceedings under court file number 700-11-022385-241. The initial order was dated December 18, 2024, and the register was modified on September 2, 2026, according to Canada.ca.

The settlement and the insolvency record point to the same investor issue: the legal recovery process is separate from the operating history of the former public company. For Lion Electric stock, the key dated figures are the CAD 5.70 million settlement, the USD 4.00 million eligible payout and the CAD 85.00 million revenue outcome for 2023.