Fisker is under investigation by the SEC as its bankruptcy case continues to unfold.

The US Securities and Exchange Commission has launched an investigation of electric car maker Fisker Automotive Inc, a bankrupt startup, according to a new filing from the financial regulator.
Fisker is under investigation by the SEC as its bankruptcy case continues to unfold.

The US Securities and Exchange Commission has launched an investigation of electric car maker Fisker Automotive Inc, a bankrupt startup, according to a new filing from the financial regulator.

The SEC says in the filing it has sent several subpoenas to Fisker as part of its probe and may issue further ones. It's not saying specifically what it's investigating -- only that "future actions alleging violations of the federal securities laws" are possible.

Fisker did not immediately respond to a request for comment. An SEC spokesperson said the agency "does not comment on the existence or nonexistence of a possible investigation."

It comes nearly four months after the automaker filed for Chapter 11 bankruptcy protection. In that time, it's architected a sale of its remaining vehicle fleet, while coming to an agreement with all of its creditors on how to liquidate its assets.

The company recently reached a plan with its creditors on how that liquidation will go, but the SEC filed an objection to the plan Friday. The commission said it's concerned there is insufficient language protecting its ability to pursue the company or other parties in its investigation. The SEC also objected to the settlement because it makes no mention of how, or even if, Fisker plans to preserve its corporate records.

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 wrote in the filing. The SEC also said it has asked Fisker where its corporate records will be maintained after a settlement plan is enacted but "has not received any response.".

Fisker first publicly disclosed that it received a subpoena from the SEC in its bankruptcy filing in August. It also disclosed, in another August filing, that the SEC filed a claim in the bankruptcy case of "undetermined" amount for "litigation." Neither filing confirmed if the company was under investigation, though.

Fisker collapsed earlier this year after failing to get its Ocean SUV into the hands of more than a few thousand customers. The company, we disclosed previously, wasn't able to meet its very meager internal sales targets. It also attempted to pivot from a direct sales model to selling the Ocean through dealers.

In late 2023 the company suddenly swapped out several chief accounting officers, and was late in filing with the SEC its third-quarter financial results. That late filing allowed Fisker's biggest lender to apply pressure to the company that ultimately helped it go bankrupt. Multiple former employees also have detailed for TechCrunch how the company struggled at times to keep its finances straight, including one point briefly losing track of as much as $16 million in customer payments — a claim Fisker has denied.

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2024-10-05 19:01:49