Hyperdrive
Bankrupt Lordstown Says It’s Held Confidential Settlement Talks With SEC
- Lordstown lawyer says SEC inquiry could spawn civil claims
- Lawyer tells federal judge talks may not result in settlement
Lordstown Motors Corp. headquarters in Lordstown, Ohio.
Photographer: Dustin Franz/BloombergThis article is for subscribers only.
Bankrupt Lordstown Motors Corp. has had confidential settlement talks with the US Securities and Exchange Commission, which has previously inquired about whether the electric vehicle startup misled investors in relation to its merger with a blank-check company when it went public in 2020.
Lordstown lawyer Thomas Lauria said during the company’s debut bankruptcy hearing in Delaware Wednesday that the SEC’s investigation could result in civil claims but it’s not yet known whether discussions will result in a settlement or future litigation. Lauria didn’t discuss the nature of the civil claims or details about the SEC’s investigation during the hearing.