Proterra $29M Securities Class Action Settlement

If you purchased or otherwise acquired public shares in Proterra Inc. (“Proterra”) either as part of the company’s business combination with ArcLight Clean Transition Corp. or bought Proterra common stock between August 11, 2021 and August 7, 2023, you may be eligible to submit a claim for a cash payment from a class action settlement.

Proterra Inc. has agreed to pay $29,000,000 to settle a class action lawsuit for alleged violations of federal securities laws. The lawsuit claims that Proterra and other defendants made misrepresentations and omissions in their proxy/registration statement and subsequent public statements, particularly regarding supply chain reliability, business scalability, financial health, and operational issues.

Who is eligible for a settlement payment?

Class members must meet the following criteria:

• You purchased or otherwise acquired public shares in Proterra Inc. (including by exchanging publicly traded ArcLight Clean Transition Corp. shares) pursuant and/or traceable to the proxy/registration statement dated May 14, 2021, which was used for Proterra’s business combination with ArcLight Clean Transition Corp.
• To clarify: You acquired shares in Proterra via the exchange of ArcLight Clean Transition Corp. shares in June 2021.

• You purchased or otherwise acquired Proterra common stock on the open market between August 11, 2021 and August 7, 2023, both dates inclusive, and were damaged thereby.
• You purchased Proterra shares on the open market between June 15, 2021 and August 7, 2023.

How much is the securities class action payout?

• Pro Rata Cash Payment: The estimated average benefit per share, before deductions for settlement fees and expenses, is approximately $0.207. Final individual payment amount will be determined by when shares were purchased or sold and at what price, number of shares you still hold, and the total number of settlement claims filed.
• Section 10(b) Claims: For shares bought between August 11, 2021 and August 7, 2023, recognized loss is calculated based on the difference between purchase price and sale price, or the average closing price during the 90-day period after the class period, depending on when shares were sold.
• Section 11 Claims: For shares purchased or acquired between June 15, 2021 and July 9, 2021 (including by exchange of ArcLight shares), recognized loss is based on the difference between the $10 per share offering price and the sale price or, if held, the average closing price after the class period.

How to claim a settlement payment

To claim a class action rebate, class members must submit a claim by the deadline of August 29, 2025. You can file a claim online or print the PDF claim form and mail it to the settlement administrator.

Settlement Administrator's mailing address: Villanueva v. Gareth T. Joyce, et al., c/o A.B. Data, Ltd., P.O. Box 173013, Milwaukee, WI 53217

Is proof required to submit a claim?

Yes, claimants must provide documentation which should include: brokerage confirmation slips or account statements showing detailed transaction and holding information.

Payout options

• Paper check mailed to the address provided on the claim form.
• Payment to an IRA can be requested.

$29 Million class action settlement fund

The $29,000,000 settlement fund includes these payments:

• Settlement administration costs: $300,000, any increase in amount requires court approval
• Attorneys' fees: Up to $7,250,000
• Attorneys' expenses: Not to exceed $275,000
• Service awards to class representatives: Up to $10,000 for the lead plaintiff and $5,000 for each additional named plaintiff
• Payments to approved claimants: Remainder of the settlement fund after deductions

Important dates

• Fairness Hearing: August 20, 2025
• Deadline to File a Claim: August 29, 2025
• Deadline to Exclude Yourself: July 1, 2025

When is the Proterra Inc. Securities Litigation payout date?

Payments to eligible class members will be made after final hearing takes place on August 20, 2025 and the court approves the settlement and claim processing is complete.

Why did this class action settlement happen?

The class action lawsuit alleged that Proterra and related defendants made false and misleading statements in their proxy/registration statement and subsequent public filings. These alleged misstatements concerned the company’s supply chain reliability, business scalability, financial health, and operational issues.

Plaintiffs claimed these misrepresentations violated federal securities laws and caused investors to suffer financial losses. The settlement was reached to provide a cash payment to impacted shareholders and to avoid the costs and delays of continued litigation.

Sources

1. Class Notice
2. Settlement Website
3. Official Settlement Document