Fisker's Liquidation Plan Faces Legal Challenges Over Recall Costs

The DOJ and SEC object to Fisker's bankruptcy plan, citing illegal recall repair charges and lack of record transparency.

Fisker's liquidation plan proposes charging customers for recall-related repairs, which the DOJ argues is illegal under the National Traffic and Motor Vehicle Safety Act.
The DOJ's objection follows an SEC investigation into Fisker's financial records, raising concerns about the company's compliance with regulatory standards.
Fisker has identified five safety issues with its vehicles, with two requiring physical repairs that the company initially planned to charge owners for.
The DOJ emphasizes that all costs for remedying defective vehicles must be covered by the manufacturer, regardless of bankruptcy status.
The SEC's concerns include Fisker's unclear plans for preserving corporate records during the liquidation process.