The Royal Canadian Mounted Police (RCMP) have opened a criminal investigation into Lion Electric Co. following complaints from shareholders alleging deceptive practices and misleading financial disclosures.

The probe by federal authorities comes in parallel with a class-action lawsuit filed in February, in which investors claim the St-Jérôme–based electric school-bus manufacturer misrepresented its order book, production capacity, and financial health—leading to inflated stock prices before a dramatic collapse in late 2024.

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The lawsuit alleges damages from the drop in share value, which reportedly plunged by as much as 96% once the truth emerged .

The RCMP's investigation aims to determine whether any criminal securities violations occurred, including potential fraud or misrepresentation to investors.

Lion Electric entered creditor protection in December with around US $500 million in debt, and has since sought a restructuring focused on school-bus production and localizing manufacturing in Quebec.

 A court-appointed monitor later indicated the company may ultimately face liquidation after provincial authorities declined additional public funding.

Following the shareholder complaints and the ongoing class-action, Quebec opposition parties have called for a legislative inquiry and transparency over millions in public funds the company received .

Lion Electric’s spokesperson, Patrick Gervais, stated that due to legal constraints, the company is unable to comment on the RCMP investigation .