The U.S. Department of Justice says bankrupt EV startup Fisker’s plan to make owners pay for labor costs related to multiple recalls is illegal, according to a new filing.
The DOJ, writing on behalf of the National Highway Traffic Safety Administration (NHTSA), said in a filing submitted to Fisker’s bankruptcy docket Monday that the “scheme” violates the National Traffic and Motor Vehicle Safety Act in multiple ways. The agency told the court that it therefore objects to Fisker’s proposed settlement plan, which lays out steps to liquidate the remainder of the company. That plan could be confirmed by a judge as early as Wednesday during a previously scheduled hearing.
