SEC investigating Fisker bankruptcy

Fisker's bankruptcy troubles seem far from over now that the federal government's getting involved.

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posted on 8 months ago — updated on 1 second ago

The U.S. Securities and Exchange Commission (SEC) is investigating bankrupt EV startup Fisker, according to a filing spotted by TechCrunch.

In the filing, the SEC said it had sent multiple subpoenas to Fisker as part of the investigation and may send more. The filing does not discuss the cause of the investigation, but notes that it could result in "future actions alleging violations of the federal securities laws."

2023 Fisker Ocean One

This isn't the first indication that Fisker could be in trouble with the SEC. The automaker filed for Chapter 11 bankruptcy protection in June, and disclosed receiving a subpoena from the SEC in an August filing related to that bankruptcy, according to TechCrunch. In another August filing, Fisker also disclosed that the SEC had filed a claim in the bankruptcy case for an "undetermined" amount for "litigation."

The SEC on Friday also filed an objection to a liquidation plan Fisker and its creditors had agreed on, TechCrunch reports. The regulator argued that the terms of the agreement leave insufficient language protecting its ability to pursue the company or other parties in its investigation, and doesn't specify how—or even if—Fisker will preserve its corporate records.

2023 Fisker Ocean One

Fisker had ambitious plans for a full line of EVs, but only managed to bring the Ocean SUV to market. Manufactured by Magna in Graz, Austria, the Ocean's production ramp-up was slow, as were sales. After it filed for bankruptcy, Fisker was left with 3,321 vehicles that it tried to offload to a leasing company for $14,000 each. That's a steep discount from the original retail base price of $38,999.

Fisker has said it will continue to support existing vehicles with software updates, but owners will have to pay for some repairs related to ongoing recalls. The Fisker Owners Association (FOA) has worked to identify shops where Ocean EVs can be serviced and fixed.

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