Lordstown Motors’ former partner Foxconn responds to lawsuit

By Sarah Lizee

Olympia, Wash., June 28 – Lordstown Motors Corp.’s largest shareholder and former partner Foxconn responded to the company’s Chapter 11 filing and lawsuit against Foxconn in a statement issued Wednesday.

As previously reported, Lordstown Motors filed its petition on Monday in the U.S. Bankruptcy Court for the District of Delaware, simultaneously filing a complaint against global technology company Hon Hai Technology Group and some of its affiliates, including Foxconn Ventures Pte. Ltd. (collectively, Foxconn).

The litigation details Foxconn's alleged fraud and willful and consistent failure to live up to its commercial and financial commitments, which led to material damage to the company as well as its prospects, Lordstown said.

Foxconn said Wednesday that it has been “holding a positive attitude in conducting constructive negotiations” with Lordstown and in “assisting LMC in finding a solution to its financial difficulties.”

Lordstown Motors has “continuously attempted to mislead the public” and has been reluctant to perform the investment agreement between the two parties in line with its terms, Foxconn said.

“Regarding LMC's litigation announcement today and the false comments and malicious attacks made by LMC in its external statements against Foxconn, the company reserves the right to pursue legal actions and also suspends subsequent good faith negotiations,” Foxconn said in the release.

The Lordstown, Ohio-based electric vehicle maker filed Chapter 11 bankruptcy under case number 23-10831.

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