Summary
- SEC investigating bankrupt EV startup Fisker
- SEC sent multiple subpoenas to Fisker
- Fisker filed for Chapter 11 bankruptcy protection in June
- Fisker expected to continue supporting vehicles with software updates
- Owners will have to pay for some recall repairs
Article
The U.S. Securities and Exchange Commission (SEC) is currently investigating Fisker, a bankrupt electric vehicle (EV) startup. The SEC has issued multiple subpoenas to Fisker as part of the investigation, with the possibility of further subpoenas in the future. The investigation could potentially lead to actions alleging violations of federal securities laws, although the exact cause of the investigation has not been disclosed. Fisker filed for Chapter 11 bankruptcy protection in June, and has disclosed receiving a subpoena from the SEC in a previous filing related to the bankruptcy.
In addition to the subpoenas, the SEC has also filed an objection to a liquidation plan that Fisker and its creditors agreed on. The SEC argues that the terms of the agreement do not provide sufficient protection for the SEC to pursue the company or other parties in the investigation. The regulator also highlights that the liquidation plan does not specify how or if Fisker will preserve its corporate records. Fisker, which had ambitious plans for a full line of EVs, only managed to bring the Ocean SUV to market. Sales of the Ocean SUV were slow, and after filing for bankruptcy, Fisker was left with 3,321 unsold vehicles, which it tried to sell to a leasing company at a steep discount.
Despite the bankruptcy, Fisker has stated that it will continue to support existing vehicles with software updates. However, owners of these vehicles may be required to pay for some repairs related to ongoing recalls. The Fisker Owners Association (FOA) has been working to identify repair shops where Ocean EVs can be serviced and fixed. The future of Fisker remains uncertain as the SEC investigation unfolds. The automaker has faced challenges in bringing its vehicles to market and establishing a foothold in the competitive electric vehicle industry. The outcome of the investigation and the ability of Fisker to resolve its financial and legal issues will ultimately determine the company’s future prospects.
In summary, the SEC investigation into Fisker’s bankruptcy has raised questions about the company’s compliance with federal securities laws. The ongoing investigation includes multiple subpoenas and potential actions alleging violations of securities laws. The SEC has raised concerns about the liquidation plan agreed upon by Fisker and its creditors, highlighting the need for proper protection and preservation of corporate records. Despite the challenges faced by the company, Fisker has committed to supporting existing vehicles with software updates while owners may need to cover the costs of some recall repairs. The ultimate outcome of the investigation and Fisker’s ability to address its financial and legal issues will determine the company’s future in the EV market.
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