EV startup Fisker faces probe by US securities regulator
5:02 pm Friday, October 04th, 2024
(Reuters) – The U.S. Securities and Exchange Commission is investigating Fisker and has sent multiple subpoenas to the bankrupt EV maker, according to a filing by the regulator on Friday.
Fisker filed for bankruptcy protection in June, after burning through cash in an attempt to ramp-up production of its Ocean SUVs.
The company is winding down its operations in bankruptcy, after selling off its fleet of vehicles and reaching settlements with creditors. It intends to ask a U.S. bankruptcy judge to approve its liquidation plan at an Oct. 9 court hearing in Wilmington, Delaware.
The SEC said it objects the liquidation plan, citing reasons such as the lack of clarity on how and whether Fisker intends to preserve its corporate records
Fisker did not immediately respond to a Reuters request for comment.
The SEC had sent multiple subpoenas to Fisker as part of the investigation, and may send more, the filing said, without disclosing specific details about the probe.
The regulator has requested information from Fisker about where the company’s books and records will be maintained after a settlement plan is adopted but the SEC has not received any response, it said.
“The Commission has outstanding investigative subpoenas and may have the need to request or subpoena additional documents in the future relating to its ongoing investigation,” the SEC said.
(Reporting by Harshita Mary Varghese in Bengaluru and Dietrich Knauth in New York; Editing by Devika Syamnath)
