Fisker, the bankrupt EV startup, is currently facing an investigation by the U.S. Securities and Exchange Commission (SEC). The SEC has issued multiple subpoenas to Fisker as part of the investigation, with the possibility of more to come. While the specific details of the investigation have not been disclosed, it could lead to future actions alleging violations of federal securities laws.
Following Fisker’s Chapter 11 bankruptcy filing four months ago, the company has been working on selling off its remaining vehicle fleet and reaching agreements with creditors on asset liquidation. A recent settlement plan between Fisker and its creditors has drawn objection from the SEC. The commission is concerned about the lack of language protecting its ability to pursue the company or other parties in the investigation, as well as the absence of plans to preserve corporate records.
Despite receiving a subpoena from the SEC in August, Fisker had not confirmed whether it was under investigation at that time. The company’s challenges leading up to its collapse earlier this year included difficulties in delivering its Ocean SUV to a wider customer base, failure to meet sales goals, and unsuccessful attempts to shift to a dealer partner sales model. Additionally, Fisker faced issues with financial management, including delays in filing financial results and losing track of customer payments.
As the SEC continues its investigation into Fisker, the company’s future remains uncertain. The outcome of the investigation could have significant implications for Fisker’s operations and any potential legal actions that may arise. It is crucial for Fisker to address the concerns raised by the SEC and cooperate fully with the investigation to ensure transparency and compliance with federal securities laws. The developments in this case will be closely watched by industry observers and stakeholders as they unfold.
