All posts tagged: Lordstown

Lordstown Motors’ ousted CEO settles with SEC for misleading investors

Lordstown Motors’ ousted CEO settles with SEC for misleading investors

Steve Burns, the ousted founder, chairman and CEO of bankrupt EV startup Lordstown Motors, has settled with the U.S. Securities and Exchange Commission over misleading investors about demand for the company’s flagship all-electric Endurance pickup truck. Burns was ordered to pay a civil fine of $175,000 and cannot serve as an officer or director of a public company for two years, according to the agreement filed with the U.S. District Court for the District of Columbia. Without admitting or denying the SEC’s allegations, Burns consented to a permanent injunction, the fine and other stipulations in the agreement, according to the SEC. The SEC charged Lordstown Motors in February 2024 with misleading investors about the sales prospects of its Endurance electric pickup truck. The company agreed to pay $25.5 million. At the time, it wasn’t clear that the SEC was also going after Burns. Lordstown Motors was founded in April 2019 as an offshoot of Burns’ other company, Workhorse Group. The company went public the following year via a merger with a special purpose acquisition company DiamondPeak Holdings …

Lordstown Motors comes out of bankruptcy with a new name to fight Foxconn

Lordstown Motors comes out of bankruptcy with a new name to fight Foxconn

Lordstown Motors has emerged from bankruptcy with a new name and a nearly singular focus: continuing its lawsuit against iPhone-maker Foxconn for allegedly “destroying the business of an American startup.” The company announced in a late Thursday regulatory filing that it has put into effect a Chapter 11 restructuring plan that was recently approved by the Delaware Bankruptcy court. That makes it one of the first EV startups to survive the bankruptcy process in some form, albeit extremely diminished. Electric Last Mile Solutions liquidated in a Chapter 7 proceeding in 2022, while IndiEV’s Chapter 11 proceeding is still playing out in California. A decade ago, both Fisker Automotive and Coda sold themselves off to other buyers in their Chapter 11 restructurings. Now known as Nu Ride Inc., the reconstituted version of Lordstown Motors will also pursue “potential business combinations,” though it did not say what kinds of mergers it is seeking. The company has little left to its name. It sold the former General Motors factory it once owned to Foxconn; the assets related to …

Lordstown Motors charged with misleading investors about the sales potential of its EV pickup

Lordstown Motors charged with misleading investors about the sales potential of its EV pickup

The Securities and Exchange Commission has charged bankrupt Lordstown Motors with misleading investors about the sales prospects of its Endurance electric pickup truck. Lordstown has agreed to pay $25.5 million as a result — money that the SEC says will go towards settling a number of pending class action lawsuits against the company. “We allege that, in a highly competitive race to deliver the first mass-produced electric pickup truck to the U.S. market, Lordstown oversold true demand for the Endurance,” Mark Cave, Associate Director of the SEC’s Division of Enforcement said in a statement. “Exaggerations that misrepresent a public company’s competitive advantages distort the capital markets and foil investors’ ability to make informed decisions about where to put their money.” The SEC says its investigation into Lordstown Motors is ongoing. This story is developing…   Source link

Lordstown Motors founder launches new EV startup with trucks we’ve seen before

Lordstown Motors founder launches new EV startup with trucks we’ve seen before

The ousted founder of bankrupt EV startup Lordstown Motors has launched a new company called LandX Motors, that prominently displays the same electric pickup truck he once promised would beat Tesla, Ford and General Motors to market. Steve Burns, a self-described “serial entrepreneur,” bought most of the remaining assets of his former startup late last year as part of the Lordstown’s Chapter 11 bankruptcy proceedings, including a large chunk of its electric pickup trucks. On a new website for LandX Motors, he says this company will chart “the future of mobility,” and claims he will build a whole lineup of vehicles on the platform that underpins what used to be called the Endurance. While LandX Motors doesn’t explicitly refer to the trucks as the Endurance, a video on the website shows EV trucks that have the Lordstown badge. A person familiar with the company’s plans told TechCrunch that it’s not so much about the Endurance truck, but the underlying platform, software and engineering behind it. Still, with the former Lordstown trucks playing a starring role …

As Lordstown immolates, SPAC deals that didn’t go to zero feel like the exception

As Lordstown immolates, SPAC deals that didn’t go to zero feel like the exception

In 2020 and 2021, we had several months when enthusiasm for new EV manufacturers was crossed with the resurgence of blank-check companies. Also called special purpose acquisition companies, or SPACs, these listed shell companies promised quick access to capital and a path to the public markets, and a wide array of tech and tech-ish companies took them up on the offer. The Exchange explores startups, markets and money. Read it every morning on TechCrunch+ or get The Exchange newsletter every Saturday. In 2020 and 2021, several electric vehicle companies took the SPAC route to raise quick cash and go public, especially because investors were pretty OK with investing in such experimental transactions. Full of enthusiasm, these companies’ investor presentations showed a clear path to production and stellar profits. It’s obvious in retrospect, but the results often proved to be messy. U.S.-based EV company Lordstown Motors is one such example. Today, the company filed for bankruptcy protection and sued its former partner Foxconn at the same time. As TechCrunch reported earlier this morning: Lordstown Motors has …

Lordstown Motors sues Foxconn, files for bankruptcy

Lordstown Motors sues Foxconn, files for bankruptcy

Lordstown Motors has made good on its threat to sue Foxconn, the Taiwanese company best known for manufacturing Apple’s iPhones. The EV company took legal action against Foxconn Tuesday, and simultaneously filed for bankruptcy and put itself up for sale. Lordstown, the EV startup that went public via a merger with a special purpose acquisition company in 2020, filed for Chapter 11 protection in Delaware. The litigation and restructure come after Lordstown failed to resolve its dispute with Foxconn over a previously agreed upon investment. In a complaint filed Tuesday, Lordstown accused Foxconn of fraudulent conduct that destroyed “the business of an American startup.” Lordstown also claimed that Foxconn’s conduct is “littered with a series of broken promises and repeated refusals to take any action” in regards to the consumer electronic company’s agreement to invest in the company and purchase a substantial portion of shares. Foxconn, also known as Hon Hai Technology Group, had purchased Lordstown’s Ohio manufacturing facility in 2021 from the struggling EV SPAC. At the time, Foxconn agreed to pay $230 million …

Lordstown Motors plans to sue its one-time savior Foxconn

Lordstown Motors plans to sue its one-time savior Foxconn

Lordstown Motors is preparing to sue Foxconn, the Taiwanese manufacturer once considered a savior to the beleaguered EV maker. Lordstown said Friday in a regulatory filing that it will sue Foxconn if the company pulls out of an investment agreement and fails to buy nearly 10% of the EV company’s shares. The threat of litigation comes as Lordstown scrambles to raise capital and stay in business. Lordstown said in its first-quarter earnings report that it would likely cease production of its Endurance pickup truck “in the near future” after repeated production delays, failing to find a strategic partner for the truck and extremely limited ability to raise capital in the current market environment. The EV maker, which became publicly traded following a merger with a special purpose acquisition company, has faced a long string of capital challenges and internal scandals. In September 2021, it appeared that Lordstown had found a solution when Foxconn agreed to buy its 6.2-million-square-foot factory in Ohio and build its EVs. Foxconn agreed, at the time, to pay $230 million for the …

Lordstown Motors turns to a reverse stock split to save Foxconn deal

Lordstown Motors turns to a reverse stock split to save Foxconn deal

Lordstown Motors will issue a reverse stock split, a last-ditch move meant to pull the EV automaker out of the penny stock doldrums and salvage a deal with Taiwanese manufacturer Foxconn. The stock fell about 3.7% to $0.28 a share following the announcement. Lordstown’s board approved a 1:15 reverse stock split during its shareholder meeting May 22, the company said in a regulatory filing Tuesday. For Lordstown, this means that when the market opens Wednesday, each bundle of 15 shares will be combined into one issued and outstanding share of common stock. The company said it will adjust outstanding equity-based awards and that no fractional shares will be issued in connection with the reverse stock split. Lordstown cautioned investors in an early May regulatory filing that it could be forced to file for bankruptcy because Foxconn had threatened to pull out of critical funding deal. Foxconn has previously agreed to buy about 10% of the Lordstown’s common stock for $47.3 million. In late 2021, Foxconn bought the company’s 6.2-million-square-foot factory in Lordstown, Ohio for $230 …

Lordstown Motors’ Endurance EV pickup truck is dying

Lordstown Motors’ Endurance EV pickup truck is dying

Beleaguered EV company Lordstown Motors seemed to have found a financial savior in Foxconn, the Taiwanese manufacturer best known for making iPhones for Apple. But now, with that relationship faltering, it appears the the road is ending for Lordstown’s Endurance EV truck and maybe even the company. Lordstown issued a warning May 1 that it could be forced to file for bankruptcy because Foxconn may pull out of a critical funding deal. On Thursday, the company said in its first-quarter earnings report that “it anticipates production of the Endurance will cease in the near future” after repeated production delays, failing to find a strategic partner for the truck and extremely limited ability to raise capital in the current market environment. Lordstown Motors had just $108 million in cash at the end of the first quarter, according to its earnings report. Shares of Lordstown Motors, which hit an all-time low of $0.25 earlier this week, were trading up at $0.39 by midday. The company, along with manufacturing partner Foxconn, started commercial production of the Endurance in …

Lordstown savior Foxconn is threatening to pull funding

Lordstown savior Foxconn is threatening to pull funding

Lordstown Motors is at risk of failing — again. The EV startup that went public via a SPAC merger cautioned investors Monday that it may be forced to file for bankruptcy because Foxconn may pull out of a critical funding deal, according to a regulatory filing. Taiwanese manufacturer Foxconn sent a letter April 21 to Lordstown stating the automaker was in breach of the investment agreement because its stock price fell below $1 for 30 days and was at risk of being delisted on the Nasdaq exchange. Foxconn warned it would terminate the investment agreement if the breach is not resolved within 30 days. While Lordstown disagreed with Foxconn’s assertion and said it intended to enforce its rights, the company also warned that withholding key funding would be detrimental to the company. If the investment doesn’t go through, Lordstown won’t have the funding it needs to continue operating, according to the SEC filing. Lordstown said it is evaluating legal and financial alternatives in the event a resolution is not reached. “As a result of these …