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Published on March 2nd, 2012 | by Andrew Meggison

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Fisker – Not Fast Enough to Outrun Angry Investors

The hits just keep on coming for electric vehicle (EV) maker Fisker Automotive Inc. (Fisker). An investor is suing the company for alleged fraud and breach of duty in the sale of company stock.

Fisker makes great looking EVs but they just cannot keep their books in order and now they are being sued by an investor by the name of Daniel Wray. Between October 2009 and April 2011 Wray bought about $210,000 in unregistered preferred Fisker stock. A nice investment in a company that looked to have potential, that is until things began to go south for Fisker.

Wray alleges he received word from Fisker on January 18th in the form of a letter informing him that due to the need for equity capital financing there was now a pay to play action in effect — Fisker wanted Wray to invest $83,922.32 on top of his previous investments. If Wray failed to do so by January 27th Wray would allegedly lose rights that he received when he first purchased Fisker stock. Rights such as a discounted price if the company went public, protection against dilution of his shares by later purchasers, and preference in a bankruptcy.

The lawsuit brought by Wray is basically saying that Fisker’s preferred stock is a scam.

To further complicate matters, the U.S. Department of Energy has frozen $336 million of Fiskers $529 million loan from last May because Fisker failed to meet a number of undisclosed milestones. Plus in the past few months Fisker has closed their Delaware plant and laid off 71 workers in Delaware and Orange County.

At a time when Fisker could really use some money from outside investors this lawsuit, and the allegations brought by the lawsuit, mean more financial hardship for a once promising company. This is not the first time Fisker has been sued due to questionable business practices. In 2008 Tesla Motors filed a lawsuit accusing Henrik Fisker of signing a design contract in order to only get an inside look at Tesla’s confidential design information and secrets, and then launch Fisker Automotive and announce a competing EV less than a year later. The judge in the case eventually ruled in favor of Fisker, denying Tesla’s claim that its competitor had pirated Tesla’s hybrid technology.

The Fisker Karma sells for $103,000.

Source: taxdollars.ocregister.com

Andrew Meggison was born in the state of Maine and educated in Massachusetts. Andrew earned a Bachelor’s Degree in Government and International Relations from Clark University and a Master’s Degree in Political Science from Northeastern University. Being an Eagle Scout, Andrew has a passion for all things environmental. In his free time Andrew enjoys writing, exploring the great outdoors, a good film, and a creative cocktail. You can follow Andrew on Twitter @AndrewMeggison

 

 

 

 




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About the Author

Andrew Meggison was born in the state of Maine and educated in Massachusetts. Andrew earned a Bachelor's Degree in Government and International Relations from Clark University and a Master's Degree in Political Science from Northeastern University. In his free time Andrew enjoys writing, exploring the great outdoors, a good film, and a creative cocktail. You can follow Andrew on Twitter @AndrewMeggison



  • John

    The Fisker Karma is not an EV, it’s a hybrid.

    • http://importantmedia.org/members/joborras/ Jo Borras

      It’s being marketed as an EV with a range-extending generator.

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  • John Cunningham

    This is a classic move from Comrade Urkel’s regime: shovel hundreds of millions of borrowed
    Chinese dollars to a crony’s plant in Finland to produce $100K sportscars for rick pricks like
    Leonardo di Capria.

    • http://importantmedia.org/members/joborras/ Jo Borras

      I have no idea what kind of bizarre point you’re making with the “Comrade Urkel” comment (although it seems vaguely racist, on first read), but I like that you called DiCaprio a prick, so I’ll approve this comment.

      • Les Nessman

        ‘Comrade Urkel’ is fairly obvious.
        ‘comrade’ is a swipe at him being a communist.
        ‘urkel’ is a swipe at him for being an awkward looking geeky nerd.
        But of course for some people, any criticism that regularly happens to other politicians is racist when it happens to Ol’ Jug Ears. So who’s the real racist here?

        • http://importantmedia.org/members/joborras/ Jo Borras

          “Ol’ Jug Ears”? Yeah, the racist? It’s you. Die in a fire.

        • http://importantmedia.org/members/joborras/ Jo Borras

          Just a bit of observation here, I don’t think you know what communists do. Barry’s been taking money from the middle class and funneling it to the banks in the form of bailouts to cover bad loans … who then went after people’s bad loans, anyway (paying their lawyers with the bailout funds). That’s redistribution of wealth, all right – from the MASSES to the FEW, the OPPOSITE of communism.

          Seriously, the GOP should be waving pictures of Obama around instead of the elephant. The guy makes Reagan look like Carter!

          Still, though: die in a fire.

          • Les Nessman

            Yeah, you’re not TOO insane.
            What well balanced comments you make (and make and make and make).
            You do realize that everyone reading your comments is laughing at you?

          • comatus

            A Reichstag fire.
            See, I didn’t call him a Communist. Not with those “business credentials.”

          • http://Web richard40

            You do make a decent point that Obama is not a complete socialist, of the Marxist/communist type, since he only steals property from non-cronies. I would characterize his regime as socialist gov economic intrusion, regulation, and taxation, combined with a crony capitalist reward to rich friends, donors, and cronies, and extemsive persecution of those perceived as enemies. Looking at history, the better analogue to Obamas program would be Fascism or National Socialism.

  • TonyM

    Wow, a real $103,000 people car! The Chevy Volt may be a joke but giving this company tax money is obscene.

    • http://importantmedia.org/members/joborras/ Jo Borras

      Fisker never tried to build a people’s car – their whole business model is based on introducing their EV tech on high-end models until the economies of scale catch up to them, allowing them to build a mass/mainstream car later. It’s called diffusion of innovation, and was established/decribed by Keynes, a (the) prominent CONSERVATIVE economist and philosopher.

      Do you idiots (IDIOTS!) even know what you’re complaining about, anymore?

      • http://importantmedia.org/members/joborras/ Jo Borras

        I’ve been reading your comments all day, and I have an answer: no, you do not.

  • DFC

    What Fisker is doing is SOP in venture investing: later rounds of investment in struggling companies often alter the terms of earlier rounds, sometimes “cramming down” earlier investors. Fisker isnt doing anything untoward or uncommon. Just trying to survive.

    • http://importantmedia.org/members/joborras/ Jo Borras

      It still seems a bit skeevy, no?

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  • John

    The best part of this is knowing how many liberals bankrupted themselves trying to cash in on Obama’s fantasy, the “green economy”.

    Morons dumping billions on algea farms that won’t turn a profit in a thousand years when they shoulda just stuck it in something boring like Proctor and Gamble.

    • http://importantmedia.org/members/joborras/ Jo Borras

      Wow, there is so much weirdness in this … you think the bankers and finance guys backing companies like Tesla voted Democrat? Weird.

      • Skullberg

        You do know that Obama received more money from Goldman Sachs in ’08 than any other politician in history, right?

        • http://importantmedia.org/members/joborras/ Jo Borras

          Oh, for SURE! Obama wanted to redistribute wealth all right: from the middle class to his rich banker buddies.

  • Koblog

    Here, Jo, I’ll translate: President Obama gets a ton of mysterious campaign money from various supporters. Those supporters just happen to want to build “green” cars that nobody wants or can afford and that the market refuses to supply capital for because they all know it’s a bad investment.

    President Obama gets Nobel Prize Winner Chu at the DOE to guarantee billions of dollars in loans to all of Obama’s favorite “green” companies, who just happen also to be his supporters. The money is spent. The companies go broke. The “investors” melt away and billions of dollars disappear into the pockets of Obama’s supporters.

    It doesn’t matter if it’s green cars like the Volt or this Fisker or green energy like windmill or solar panel companies. Billions are given them and evaporate when the companies go belly up. Ever heard of Solyndra? You do realize the California Democrat Party was one of the “investors” that got its money out when they went bankrupt after millions of guaranteed federal loans went missing? What is the California Democrat Party doing “investing” its money? Isn’t it supposed to be spending it on campaigns? Does this not stink to high heaven for you?

    We have the most corrupt federal government ever. Obama castigated Bush for being $469 billion in debt, but has run his own debt to $1.5 trillion — four times more than Bush. And he wants to spend even more on critical “rights” like contraceptives and more “green” energy projects like algae biofuel and bullet trains nobody will use and will never pay off.

    But mostly, this is all a way to funnel taxpayer money or money borrowed from the Chinese to his supporters, who then give it back to him for his campaign.

    Clear enough for you?

    • Hoth

      An excellent synopsis Koblog. To bad it will most likely go over Jo’s head.

      • http://importantmedia.org/members/joborras/ Jo Borras

        Lots of things go over my head while my nose is buried in books. You should try it!

    • http://importantmedia.org/members/joborras/ Jo Borras

      Right, Obama is the ONLY candidate getting strange deposits. For Pete’s sake, Santorum and Paul are getting money from white supremacists – they’re ALL scum!

    • http://importantmedia.org/members/joborras/ Jo Borras

      Koblog, you’re an idiot. It’s sad, because you seem to be a well-meaning idiot, but most (all?) politicians are crooked and funnel money into their supporters pockets with BS policies like no-bid contracts in Iraq (that’s right, W was an evil f***). The problem here is quite the opposite, where these green companies are being required to jump through hoops that larger companies (like GM and Ford) do NOT have to. Think Ford had to come up with the % of DOE loans that IDEA, for example, had to? (hint: they didn’t http://gas2.org/2012/02/29/not-another-solyndra-bright-automotive-closes-doors-cites-doe-loan-process/) Think Goldman or BOA would still be around today if they had to jump through the hoops the green companies had to?

      They wouldn’t.

      I felt like I had to answer that for you, since you’re too busy believing the bullshit you already believe instead of looking at anything objectively.

      UGH! I hate it when f***tarded conservoblogs pick up our stories!

  • http://Web richard40

    I have a question. Are any of these miserably failing “green” companies NOT getting a handout from Obama? I am just wondering, are there any failing green companies that are run by repubs or libertarians, that are NOT Obama cronies getting bailouts?

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