Karma News: Fisker Gets Slapped With A Federal Lawsuit

[William Maley]

By William Maley

Staff Writer - CheersandGears.com

April 9, 2013

From the "it can't get any worse, can it?" file, Fisker has been smacked with a lawsuit by their former employees alleging the company violated the law when they were laid off.

Last Friday, Fisker announced they would be laying off 75% of their employees (about 160 employees) as "a necessary strategic step to... maximize the value of Fisker's core assets," which is complicated way of saying 'we're trying to conserve as much cash as possible'.

However, employees have sued Fisker in Federal court, stating the company violated the US Worker Adjustment Retraining Notification (WARN) Act which says a company must give employees 60 days of notice of a termination. The suit also alleges Fisker failed to pay the employees the wages and other benefits they would have earned in the 60 days following the layoffs.

Fisker's communications firm, Sitrick and Co said the company had no immediate comment concerning the suit.

Source: Automotive News (Subscription Required)

William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster.

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[G. David Felt]

This is to be expected, why would anyone want to be in California and deal with the mess of trying to run a business there. Course if they are bankrupt, does that law really have merit?

This is going to be one ugly mess of a shutdown.

Be interesting to see if the courts throw out any requirements from the EPA for their loans and allows this to be taken over by the Chinese?