Lordstown Motors: SEC files $45 million proof of claim in case

By Sarah Lizee

Olympia, Wash., Jan. 9 – Lordstown Motors Corp. said the Securities and Exchange Commission has filed a $45 million proof of claim in its bankruptcy case, according to an 8-K filed Tuesday with the SEC.

The company received two subpoenas from the SEC for the production of documents and information, including relating to the merger between DiamondPeak and Legacy Lordstown and pre-orders of vehicles.

Lordstown said the debtors have been engaged in settlement discussions with the SEC to resolve potential claims relating to these matters. However, the deadline for the SEC to file proofs of claim against the debtors was Jan. 5.

On Jan. 4, the SEC filed the $45 million proof of claim on the basis of “monetary remedies for violations of federal securities laws.”

“The debtors continue to discuss a potential resolution with the SEC, but to the extent a resolution is not reached, dispute the SEC’s claim,” the company said in the 8-K.

Lordstown said any recovery by the SEC will reduce recoveries to stockholders, if any, and any potential settlement with the SEC or other parties is subject to significant uncertainty.

The Lordstown, Ohio-based electric vehicle maker filed Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware on June 27, 2023 under case number 23-10831.

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