Bankrupt Lordstown Preps For Legal Battle Against Karma Auto

Lordstown Motors wanted to expedite its brankruptcy process, but a judge denied it due to looming legal conquests with Karma Automotive.

By: Andrew Lambrecht

Aug 1, 2023 at 12:37pm ET

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Ohio-based automaker Lordstown Motors Corp. never maintained a solid footing in the electric pickup truck market. While other automakers like Rivian and Ford were able to produce and sell comparably substantial volumes of electric trucks, Lordstown sold three electric trucks in 2022 alone. To say the least, Lordstown was in a perpetual state of "production hell."

The pickup truck manufacturer succumbed to these struggles by filing for bankruptcy in June of this year. Soon after, Lordstown asked a United States bankruptcy judge to expedite its bidding procedures, giving the automaker a chance to offload its property as soon as this September.

However, the judge denied the request as California's court is considering proceeding with a lawsuit from another EV startup. Irvine-based luxury EV manufacturer Karma Automotive sued LMC in 2020. In the complaint, the plaintiff (Karma Automotive) wrote that Lordstown "stole its ideas and employees in order to save money."

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Delaware's Mary Walrath, the bankruptcy judge involved, questioned the true ownership of the IP and assets Lordstown would be selling. "The critical issue, in this case, is whether the debtors own the property that they want to sell," Walrath said, as reported by Reuters.

While Lordstown is officially bankrupt, its Endurance truck wasn't all too bad on paper. It offered 550 horsepower, delivered through four in-wheel motors. The Endurance could accelerate to sixty in 6.3 seconds and tow 8,000 pounds. However, its Achilles heel was an uncompetitive price tag of $65,060 and a limited EPA range of 174 miles. Seeing an Endurance on the road in the future will likely be a rare sight.