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Summary:

The lawsuits are piling up for electric car startup Fisker Automotive — here’s the third this month, this time from design and communication firm Ignited over an alleged unpaid bill of $535K.

FiskerKarmas2

Following a lawsuit over not paying rent for the month of April, electric startup Fisker Automotive was hit with another lawsuit on Friday. Filed in Orange County Superior Court, Fisker’s web site and mobile designer Ignited is suing Fisker over an alleged $535K in unpaid bills (embedded below).

Ignited says it provided Fisker with creative services, advertising, web design, and creative and media buying services. Along with the lawsuit from Fisker’s landlord, the company was also served a class action lawsuit for laying off 75 percent of its workforce, and allegedly not giving the former employees 60 days notice (which would violate the WARN Act). So that’s three lawsuits filed against Fisker this month, and I have a hunch there’ll be more coming.

Fisker website

Fisker appears to be close to bankruptcy and according to Reuters last week, the company hired a firm to look into bankruptcy, and could file at any time. Fisker’s founders have also been asked to attend a hearing on April 24 in Washington D.C., organized by House Republicans. Fisker drew down on close to $200 million in a government loan from the Advanced Technology Vehicle Manufacturing Program.

Fisker raised at least $1.2 billion in funds over the company’s five and half year lifetime. Fisker was backed by venture firms Kleiner Perkins (Ray Lane was a board member) and NEA, and worked with now-defunct broker Advanced Equities.

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  1. Jeez, give the guys a break. First, their battery maker supplies them with defective battery packs and then goes bankrupt — causing them all kinds of problems, from recalls, to a high-profile break-down during a major magazine test, to the fact that they haven’t been able to manufacture a car since last July…Then another supplier’s fans overheat, causing at least one high-profile fire…Then 300 brand new Karmas are destroyed by SuperStorm Sandy — and throughout it all, the political right was attacking them for being the recipient of crony capitalism while media pundits (like the author of this article) have been piling on — using Fisker’s troubles as an excuse to indulge in snarky journalism. Fisker deserves our sympathy and support, not more cheap shots.

    1. Could the above article not simply be news about a topic relevant to this site’s content? If Tesla screws up, we still hear about it. Bad news is still news. Fisker doesn’t deserve negative news breaks just as no other company deserves them.

    2. Katie Fehrenbacher Peter E. Tuesday, April 16, 2013

      @Peter E. How is a lawsuit that they are being sued because they aren’t paying their bills a cheap shot? Is that a practice that you think should be celebrated? Feel free to disclose any connection or personal relationship with the company.

  2. Its time for a big automaker buyout of Fisker. They clearly know how to make an exciting automobile, electric only technology that the other automakers are lacking in real abilities (gas electric hybrid that switches from electric after 10 miles is not a real electric vehicle).

    This would be a great opportunity to gain a marque brand and technology.

    1. Au contraire mon cheri, where did you get the notion that the Fisker is “electronic only”? If they focused purely on electric rather than their hybrid approach then they may have survived.

  3. Cj Whitfield Sunday, April 14, 2013

    I whole heartidly agree with peter.

  4. Wendy Martin Sunday, April 14, 2013

    Tesla and Fisker bribed Washington officials to get free taxpayer “loans”. It is time they were shut down. They are criminal operations

    1. Proof? None? Then be on your way.

  5. Lol. That’s seriously all I have to say.

  6. Being an owner of a Fisker I was force to immediately sell the car at much less value then purchased. Unfortunately, the car was in for service with a broken cooling fan and car was not operable when news broke of Fisker’s mass lay-off. The dealerships had no communication from the corporate office. Fisker executive management should be held accountable for this type of action. Parts to repair the car were locked behind closed doors in Anaheim. Other Fisker owner’s are in the same boat left holding the bag. All Fisker owners are not Hollywood stars and this type of business practice should not be allowed.

    I feel I was both a taxpayer and customer victim. With every new business there is risk. The government should consider reimbursement to those customers who experience direct lost as a result of Fiskers failure or a tax credit. The car is awesome but useless if there is no parts available for repair. The professional service guy at Fisker did all he could with absolutely no support from remaining management.

    1. Katie Fehrenbacher RA Tuesday, April 16, 2013

      @RA, Thanks for that perspective. I was wondering what current customers would face through all this.

  7. James Grandy Sunday, April 28, 2013

    Testing

  8. I’m thinking about buying a (used) Fisker Karma with 1k miles at a much lower price, $66k, but i am very concerned about repairs after a breakdown. If there are no parts there is no way we can possibly get it repaired. Also I think the government should step up and clean this mess, after all they started it. Frisker rushed this car out to the market, without even testing the product. Now this company is on the verge of bankruptcy.

  9. michael nash Sunday, April 28, 2013

    I also own a Fisker purchased in Dec. 2012; It is an awesome car, by far the best I have ever owned.

    But, reality will set in when I have a major malfunction, and cannot have it repaired. Will encase it in amber for my children and grandchildren to admire.

    Fisker was a victim of both politics and it’s own excesses. The DOE loan was dicey to begin with—far too many restrictive covenants for a start up auto company. One false step and it was over; unfortunaltely that scenario came to pass.

    Still hoping that some auto company with deep pockets will see the value of this beauty, buy it for ten cents on the dollar and continue to built the electric plug in hybrid.

    By the way, I am getting in excess of 100mpg and going up every day.

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