Kaskela Law LLC is investigating Faraday Future Intelligent Electric Inc. (“Faraday”) (NASDAQ: FFIE) on behalf of the company’s long-term stockholders.
The investigation is focused on whether the members of Faraday’s board of directors violated the securities laws or breached their fiduciary duties to stockholders in connection with recent corporate actions and disclosures.
Faraday engages in the design, development, manufacture, engineering, sale, and distribution of electric vehicles and related products in the United States and internationally. The current company was formed in July 2021 via a business combination with SPAC entity Property Solutions Acquisition Corp. (NASDAQ: PSAC), with Faraday as the surviving, public entity.
On October 7, 2021, J Capital Research published a report alleging, among other things, that Faraday was unlikely to ever sell a car, noting that after eight years in business, the Company has “failed to deliver a car,” “has reneged on promises to build factories in five localities in the U.S. and China,” “is being sued by dozens of unpaid suppliers,” and “has failed to disclose that assets in China have been frozen by courts.” Moreover, the report alleged that Faraday’s claimed 14,000 deposits are fabricated because 78% of these reservations were made by a single undisclosed company that is likely an affiliate. The report further alleges that contrary to representations of progress toward manufacturing made by Faraday in September 2021, former engineering executives did not believe that the car was ready for production. On this news, the Company’s share price fell $0.35 per share, or more than 4%, to close at $8.05 per share on October 8, 2021.
On November 15, 2021, Faraday announced that it would be unable to file its Form 10-Q for the fiscal quarter ended September 30, 2021 on time. Faraday further announced that its board of directors “formed a special committee of independent directors to review allegations of inaccurate disclosures,” including the claims in the J Capital report. On this news, the Company’s share price fell $0.28 per share, or approximately 3% in value.
Current Faraday stockholders who purchased or acquired shares of OWLT or SBG stock prior to June 21, 2021 are encouraged to contact Kaskela Law LLC (David Seamus Kaskela, Esq.) at (888) 715 – 1740, or by completing the information form on this page, for additional information about this investigation and their legal rights and options.