A Lordstown Motors sign is seen outside the Lordstown Assembly Plant in Lordstown, Ohio, U.S., June 21, 2021. REUTERS/Rebecca Cook/File Photobegan its bankruptcy case embroiled in litigation, laying out disputes with estranged partner Foxconn, rival electric vehicle manufacturer Karma Automotive, the U.S. Securities and Exchange Commission and several investor groups during its first court appearance.
Lordstown has alleged that Foxconn broke its promises to invest $170 million in Lordstown and collaborate with the company on vehicle development plans. Foxconn attorney Matthew Murphy said that Lordstown's allegations were "baseless" and that his client should not be blamed for Lordstown's operational failures. Lordstown had struggled with higher-than-expected costs, production shortfalls, and litigation risk well before Foxconn agreed toWhile the breakdown of the Foxconn relationship was the primary reason for Lordstown’s bankruptcy, Lauria said that the company also faced investor lawsuits in Delaware and Ohio, a U.S.
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