Written by Cláudio Afonso | LinkedIn | X
Electric vehicle (EV) manufacturer Canoo is currently facing two lawsuits, with the plaintiffs collectively seeking over $583,000 from the company.
Saxum, the Oklahoma-based communications agency alleges that Canoo breached a contract for media and strategic communication services demanding $10,600.
In addition, the compressed air system company Air Capital Equipment also filed a lawsuit last May against Canoo seeking for over $573,000.
Never miss an update on Canoo
According to Okcfox, the lawsuit states that on July 20, 2023, Canoo entered into an open account agreement with Air Capital, under which Canoo would obtain certain materials on credit.
The lawsuit seeks $573,142.82 in payment, along with attorney’s fees, costs, and interest accruing at the contractual rate of 18%.
According to court documents, Canoo denies owing the amount and has filed a motion to compel arbitration, where a neutral third party would mediate the dispute. A hearing on Canoo’s motion to compel arbitration is set for the last day of August.
Regarding the smaller lawsuit, the communications agency entered into a service agreement with Canoo on August 10, 2023 to provide media and strategic communication services in exchange for a minimum monthly fee of $5,000.
The lawsuit, filed in Oklahoma County on August 7, 2024, claims that despite Saxum performing its obligations under the contract, Canoo “failed to submit the required monthly and special payments,” leading to a default in October 2023.
Saxum sent a final demand letter and ceased services shortly thereafter. The lawsuit seeks $10,600 in damages, along with costs and reasonable attorney’s fees.
“Wherefore, Saxum prays judgment be entered against Canoo based on the following: Actual damages against Defendant ni the amount of $10,600; post-judgment interest as allowed by law; reasonable costs and attorney’s fees; and such other relief as this Court deems just and equitable,” the lawsuit.
Here’s the lawsuit filed earlier this week.
Last week, Fidelity published its updated portfolio as of the end of the second quarter disclosing that has drastically reduced its position in the EV startup Canoo across four funds.
On average, Fidelity trimmed its position in the company by about 93%.
As recently reported by EV, the Consumer Discretionary Index Fund (VCDAX) from Vanguard — the world’s second-largest asset manager — slashed its position in Canoo by nearly 94%.
Last month, the company’s Vice President of Government Affairs, ESG and Partnerships Chris Moore announced his departure from the company.
After spending nearly three years at the company, Moore leaves Canoo to join the United Nations Foundation as an Executive Director for Global Health Advocacy and Global Health Director for the Better World Campaign.
Written by Cláudio Afonso | LinkedIn | X
Never miss an update on Canoo
The post Canoo Faces Two Lawsuits Alleging Breach of Contracts and Unpaid Debts first appeared on EV.