Henrik Fisker, the CEO of EV startup Fisker, faced a lawsuit in federal court filed by the engineering firm Bertrandt AG. The firm alleges that Fisker stopped paying them for their services and wrongfully held onto intellectual property associated with the Pear EV and Alaska pickup truck prototypes. The lawsuit claims damages of around $13 million.
This legal trouble adds to the mounting challenges faced by Fisker, which is on the verge of bankruptcy. The company has already settled a number of lemon law violation lawsuits and is facing additional legal action from a former director and a textile supplier.
The lawsuit from Bertrandt is significant because it suggests that financial issues within Fisker were already present in August 2023, despite Fisker’s bold claims about the prototypes on stage. Fisker’s vice president of communications, Matthew DeBord, dismissed the lawsuit as baseless and without merit.
According to the complaint, Bertrandt entered into a design and development agreement with Fisker in May 2022. The contract was worth over $35 million and involved engineering, design, and development services for the Pear EV. The agreement also revealed that Bertrandt had previously conducted a feasibility study and cost analysis for the Pear EV.
Bertrandt claims that Fisker later requested similar work for the Alaska pickup truck but never executed a formal written agreement. However, Fisker agreed to pay $1.66 million for the services. Fisker stopped paying Bertrandt in August 2023 and continued to withhold payment through January 2024, resulting in a total unpaid amount of $7,061,443.
The engineering firm also argues that Fisker’s decision to pause development work on the Pear and Alaska EVs constituted a breach of contract, causing Bertrandt to incur delay costs. The total damages sought by Bertrandt amount to $12,919,443.
In addition to Bertrandt’s lawsuit, Corinthian Textiles, a supplier based in Georgia, has also sued Fisker. The supplier claims that Fisker has refused to pay invoices and fees totaling $1,077,571.75 for customized products used in Fisker’s automobiles.
Another legal challenge comes in the form of a proposed class action complaint filed by an employee named Robert Lee. Lee alleges that Fisker overworked employees, failed to compensate them properly, and did not reimburse expenses or pay owed wages upon separation from the company. Lee claims that hourly employees frequently worked over 12 hours per day and were often compelled to work weekends without compensation.
Fisker has also been hit with numerous lemon law violation lawsuits in California, where the majority of its cars have been delivered. The company has started settling some of these lawsuits by buying back the vehicles.
In its 2023 annual filing, Fisker noted that it is defending against a proposed class action lawsuit from shareholders alleging securities law violations. The company also mentioned other pending legal actions related to product defects, employment matters, product warranties, and consumer protection laws.
Fisker’s recent filing also revealed that it has been contacted by government agencies for information about its business, including subpoenas. However, Fisker’s communications VP stated that the company currently has no pending subpoenas from governments.
These legal challenges, along with the threat of bankruptcy, present significant obstacles for Fisker. The allegations of unpaid invoices, intellectual property disputes, and mistreatment of employees raise concerns about the company’s financial stability and corporate practices.