Steve Burns, Lordstown Motors’ founder and former CEO, agreed to a settlement with the SEC over allegations of misleading investors. The company faced scrutiny over financial disclosures and operational claims during his tenure. Burns stepped down from leadership roles amid the investigation.
The U.S. Securities and Exchange Commission (SEC) alleges Lordstown Motors misled investors regarding its sales projections. The regulator also targets the company’s auditor and adviser for potential violations of professional independence rules.
Lordstown Motors founder acquires the company’s assets through a bankruptcy sale. Analysts describe the EV startup’s outlook as critically weak despite the transaction, following its June bankruptcy filing.
Lordstown Motors filed for bankruptcy protection and sued Foxconn, alleging the company acted to undermine its operations. The EV manufacturer cites Foxconn’s role in its financial struggles, marking a legal escalation between the two partners.
