Despite filing for bankruptcy back in June, Fisker’s legal challenges continue to intensify, as the company is now facing scrutiny from U.S. regulators. With a liquidation plan set to go before a Delaware court on October 9, Fisker’s winding down of operations is far from straightforward, with the U.S. Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) raising significant concerns.
As Fisker began the process of liquidating its remaining assets, including a fleet of unsold vehicles, the SEC started investigating the company’s actions. The regulator has raised concerns about how Fisker plans to handle its corporate records, which are crucial for ongoing investigations.
The SEC has already sent multiple subpoenas to Fisker but has yet to receive a clear response. Without assurance that these records will be preserved, the agency is reluctant to approve the liquidation plan. (via Reuters)
The SEC’s concerns extend beyond record-keeping. In filings, the Commission hinted that its investigation could lead to future actions alleging violations of federal securities laws. There is also a broader worry that Henrik Fisker’s controversial decisions, including appointing his wife as CFO and his daughter as head of marketing, may have played a role in the company’s downfall.
In addition to the SEC’s investigation, Fisker faces pressure from the U.S. Department of Justice (DOJ) and the National Highway Traffic Safety Administration (NHTSA). The DOJ, representing NHTSA, has objected to Fisker’s plan to make vehicle owners pay for labour costs related to recall repairs.
Fisker has set aside US$750,000 for parts related to recalls, but this amount is insufficient to cover labour costs This, according to the DOJ, is illegal under the National Traffic and Motor Vehicle Safety Act.
