Technology

The DOJ is investigating troubled EV startup Lordstown Motors

The Justice Department is investigating Lordstown Motors, in line with The Wall Street Journal. It’s unclear what the DOJ is inspecting, however the US Attorney’s office main the investigation typically handles fraud allegations. At the second, Lordstown is additionally the topic of an SEC inquiry into claims the company made about pre-orders for its upcoming Endurance electrical pickup truck. In each cases, the startup says it’s working with investigators.

“Lordstown Motors is committed to cooperating with any regulatory or governmental investigations and inquiries,” a spokesperson for the company instructed The Verge. “We look forward to closing this chapter so that our new leadership – and entire dedicated team – can focus solely on producing the first and best full-size all-electric pickup truck, the Lordstown Endurance.”

Lordstown was considered one of a number of EV startups that went public final year by what’s referred to as a particular acquisitions company or SPAC. The maneuver helped the company increase $675 million, but it surely has been embattled ever since. Its issues began in March when Hindenburg Research printed a report accusing the company of deceptive buyers concerning the demand for its Endurance truck. In a later SEC submitting, the company warned it didn’t have sufficient money to start out manufacturing its first EV. With immediately’s information, it additionally turns into the second high-profile electrical car startup to come back below scrutiny from each the DOJ and SEC.

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