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Fisker’s Legal Woes: A Year of Mounting Troubles & Abandoned Headquarters

Electric vehicle startup Fisker has faced a barrage of legal challenges in 2024. The company’s bankruptcy filing in June was just the beginning.

Before their fall from grace, they were seen as the brand that could beat Tesla. Investors and consumers welcomed the brand and in 2020 they would be valued at $2.9 billion in an IPO. On June 28, 2021 they would be added to the Russell 3000 Index. 

On April 22, 2024 the company would be officially delisted from the stock exchange. 

Below are some of the current issues plaguing the company after a rocky few years.

SEC Investigation

The U.S. Securities and Exchange Commission (SEC) has launched a probe into Fisker. They’ve sent multiple subpoenas to the bankrupt EV maker.

The SEC raised several objections to Fisker’s asset liquidation plan including:

According to the search results, the SEC raised several objections to Fisker’s asset liquidation plan:

  • Lack of clarity on record preservation: The SEC stated that Fisker’s liquidation plan does not specify which books and records will be transferred to whom after the company’s dissolution.
  • Ongoing investigation concerns: The SEC has an ongoing investigation into Fisker and may need to request or subpoena additional documents in the future. The liquidation plan doesn’t adequately address how this will be handled.
  • Preservation of regulatory powers: The SEC wants the plan to include language that preserves its police and regulatory powers regarding the pending investigation and possible future actions related to federal securities law violations.
  • Objection to third-party releases: The SEC objects to any “prohibited nonconsensual third-party release” in the liquidation plan.
  • Retention of rights: The SEC wants to retain the right to file police and regulatory actions against Fisker and any non-debtor individuals or entities in an appropriate forum.
  • Corporate record obligations: The SEC emphasized that corporations have an obligation to preserve records and information relevant to a government investigation, which should be reflected in the liquidation plan.

The SEC’s objections stem from its ongoing investigation into whether Fisker violated federal securities laws before filing for bankruptcy. The regulator wants to ensure it can continue its investigation and potentially take action even after Fisker’s liquidation.

Bankruptcy Proceedings

Fisker filed for Chapter 11 bankruptcy in June. They’re trying to sell off assets and restructure debt. 

On October 9, 2024 a hearing was held and resulted in an approval for the bankruptcy plan Fisker submitted. The manufacturer is allowed to pay off its debts through the sale of its remaining EVs and the transfer of intellectual property to creditors. 

The company wanted approval for its liquidation plan. But the SEC’s concerns might complicate this process.

Class Action Lawsuit

Over 800 Fisker Ocean owners have joined a class action lawsuit. They’ve hired automotive litigation firm Hagens Berman. Owners report serious safety issues and software glitches with the EV brand.

Some cars have become unusable after just 2,000 miles. The lawsuit claims Fisker used aggressive sales tactics before bankruptcy. Owners feel misled and left without warranty protection.

There seems to be some interest in a lawsuit by investors as well according to this Reddit thread.

Recall Repairs Controversy

The U.S. Department of Justice (DOJ) has weighed in on Fisker’s recall issues. Fisker suggested owners might have to pay for recall repairs themselves. The DOJ says this is illegal. Manufacturers are required to cover recall repair costs. This adds another layer to Fisker’s legal troubles.

According to National Highway Traffic Safety Administration (NHTSA) there are five open recalls on the Ocean.

  1. August 2024 – Regenerative Braking
    An increased risk of a crash due to decreased braking performance which would extend the distance the car needs to stop.
  2. July 2, 2024 – Water Pump Failure
    A water pump failure is causing a sudden loss of drive power which can cause a crash.
  3. June 20, 2024 – Door Handles Can Stick
    Dorr handles can stick and prevent occupants from getting out in an emergency.
  4. June 5, 2024 – Incorrect Warning Lights
    Warning lights displaying incorrectly can fail to alert drivers to potential danger or safety information which can result in injuries or crashes.
  5. June 5, 2024 – Loss of Drive Power
    Losing drive power can increase the risk of a crash.

Fisker stated they can’t afford to fix these issue and that owners will have to pay for repairs themselves.  Worse yet, Fisker isn’t sure how to address these problems.

With bankruptcy filed and offices abandoned, Fisker seems unconcerned about these details.

The U.S. Department of Justice stated in a court filing on October 7, 2024 that Fisker’s attempts to make customers pay for the cost of repairs for recalls is illegal

Abandoned Headquarters Dispute

Fisker’s former landlord is seeking damages. Fisker is being accused of leaving the company headquarters in a mess. The landlord has made claims that hazardous waste removal and expensive cleanup is needed.

Paperwork was filed with the United States Bankruptcy Court of Delaware by the property owner. Images included in the filing show a property left in disarray. 

fisker car wrapped and left in abandoned building
United States Bankruptcy Court of Delaware
garbage left at abandoned fisker office
United States Bankruptcy Court of Delaware


The company’s future looks bleak as these issues pile up. For Fisker owners and investors, the road ahead seems bumpy and uncertain. 

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