Faraday Future shareholder sues EV startup to remove two board members

Faraday Future shareholder sues EV startup to remove two board members

(Reuters) – FF Top Holding, a shareholder in Faraday Future Intelligent Electric, has filed a lawsuit against an electric car startup seeking to remove two board members, according to a court filing, escalating the battle for a board renewal. company.

The company, which has yet to begin production of its FF 91 luxury electric car, has been under pressure from FF Top to fire CEO Susan Swenson and board member Brian Krolicky.

In a lawsuit filed in Delaware court in Chancery on Monday, the shareholder group — which owns more than 20% of the company’s stock and about 36% of the voting rights — said the startup “is experiencing a leadership crisis at the board level.”

“The current board of directors has pushed the company to the ground,” FF Top added.

In a separate filing with the US securities regulator, the shareholder said it had delivered a notice to the company nominating Lee Han and Shin (Adam) Hee as replacements for Swenson and Krueke.

Last month, several Faraday Future employees called on the board and shareholders to impeach Swenson, alleging the CEO orchestrated attempts to “drive the company into bankruptcy and restructuring.”

FF Top earlier this month delivered a notice to the company requesting that Swenson be removed.

The Los Angeles-based startup has been battling high costs and supply chain turmoil that delayed production of its FF 91 to the fourth quarter of 2022.

Adding to the company’s woes, PwC’s auditor resigned last month, citing a lack of effective internal controls at the company.

Shares of Faraday Future have fallen about 93 percent since it went public through a reverse merger with a blank check company in July last year.

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