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An investor in Faraday Future sues an EV startup for dismissing two directors

Haiden Holmes

Sep 20, 2022 10:56


According to a court filing, FF Top Holding, a shareholder in Faraday Future Intelligent Electric, has filed a lawsuit demanding the removal of two board members, escalating the fight over the company's board restructure.

FF Top has pushed pressure on the firm, which has not yet begun manufacturing its FF 91 premium electric vehicle, to oust executive chairman Susan Swenson and board member Brian Krolicki.

The shareholder group, which holds over 20% of the company's stock and roughly 36% of its voting rights, alleged in a lawsuit filed at the Delaware Court of Chancery on Monday that the corporation is "suffering from a crisis of leadership at the board level."

FF Top said that the "current board has wrecked the organization."

In a separate filing with the U.S. securities regulator, the shareholder announced that it had notified the company of its nomination of Li Han and Xin (Adam) He as replacements for Swenson and Krolicki.

Multiple Faraday Future employees petitioned the board and shareholders to remove Swenson last month on the grounds that he oversaw efforts to "push the company into bankruptcy and restructuring."

FF Top delivered a demand for Swenson's removal to the company earlier this month.

The FF 91 production by the Los Angeles-based company has been delayed until the fourth quarter of 2022 because of high costs and supply-chain difficulties.

PricewaterhouseCoopers, the company's auditor, resigned last month, citing the corporation's inadequate internal controls.

Since Faraday Future went public in a reverse merger with a blank-check company in July of last year, its shares have dropped by around 93%.