Karma News: Fisker's Founder and Board Gets Slammed With A Lawsuit

[William Maley]

Just when you thought Fisker was out of the hot water, they're back in it. Bloomberg reports that founder Henrik Fisker and the board of directors have been hit with a lawsuit over losses incurred by the company's financial problems.

Atlas Capital Management LP, an investor in Fisker, filed a federal suit in Wilmington, Delaware, on December 27 claiming the automaker withheld information regarding its financial health. The suit also alleges that Fisker kept quiet about a recall involving 239 Karmas until the day after it closed a round of financing.

Had Atlas known the truth, it “would not have purchased or otherwise acquired its Fisker securities, or, if it had purchased such securities, it would not have done so at the artificially inflated prices which it paid,” lawyers representing Atlas wrote in the filling.

Anita-Marie Laurie, a spokeswoman for Fisker with Sitrick & Co., declined to comment when asked.

Source: Bloomberg

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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[Drew Dowdell]

Buyer beware!

[ocnblu]

Agreed, like duh, electric cars are a complete boondoggle. They got what they deserved. Throw it out!

[Drew Dowdell]

Well my thought is more along the lines of this: they are suing because they are mad they didn't get insider information.

[G. David Felt]

Fisker is one dark horse that I would not touch with even a penny of my money.

[GMTruckGuy74]

I don't agree with that, dfelt. I love the Fisker Karma design and styling, but am not a huge fan of the electric drivetrain. I like what Bob Lutz is doing with the Karma (aka VL Automotive Destino) - putting the Corvette ZR1 powertrain into the Karma body. Now that's a dream car for me!

[SAmadei]

Unfortunately, I suspect what Lutz is doing is at tuner shop production levels. How many Karmas are out there in the wild? How many Karma bodies are waiting for a V8? Are Karma bodies still being made? CAN they be made again?

I don't have numbers to put with these questions, but I suspect they are closer to hundreds than thousands. I don't know why Lutz would even be interested in such a piddly project, except to get one for himself.

[G. David Felt]

GMTruckGuy74, while the auto is a nice looking 4 door sedan and what Lutz is doing is pretty interesting, I do not see this as a mass produced and available auto.

My comment is from a business stand point. I believe this will end up in the courts and be a expensive mess as those that invested try everything to get something back from the rich men who bilked them out of their money.

Yes a fool and his money are soon parted, investing in this company at any stage right now is a total waste.