Jakarta –
Electric car maker Lordstown Motors has just declared bankruptcy. Accordingly, the company also filed a lawsuit against Foxconn who are shareholders.
Quoted from CNN, Tuesday (27/6/2023), the company has submitted Chapter 11, which is one of the chapters in the Bankruptcy Act in the United States (US) to the Delaware Court as well as taking legal action against Foxconn.
Loordstown Motors accused the Taiwanese company of committing fraud and failing to follow through on promises to invest in the company.
“Despite our best efforts and sincere commitment to the partnership, Foxconn willfully and repeatedly failed to execute on its agreed strategy, leaving us with Chapter 11 as the only viable option,” Lordstown CEO Edward Hightower said in a statement.
In a statement to CNN, Foxconn deemed the lawsuit inappropriate. Foxconn said Lordstown had made “false comments and malicious attacks”.
Foxconn said it was trying to enter into constructive negotiations with Lordstown to help find a solution to its financial difficulties.
“All this time, however, (Lordstown) has continued to try to mislead the public and has been reluctant to enter into an investment agreement between the two parties,” he said.
“Foxconn initially hoped to continue discussions and reach a solution that can satisfy all stakeholders, without resorting to unfounded legal actions, but so far the two sides have not reached a consensus,” he said.
Foxconn shares in Taipei closed down 1.3% on Tuesday. Meanwhile, Lordstown shares slumped 61% pre-open. That made the company’s shares plunge even further, nearly 84% so far this year.
(acd/hns)
2023-06-27 15:14:29
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