U.S. DOJ Challenges Fisker’s Bankruptcy Plans

(Reuters) – The U.S. Department of Justice stated in a court filing on Monday that bankrupt electric vehicle maker Fisker (OTC:FSRNQ) is illegally attempting to pass on the costs of vehicle recalls to customers.

Fisker filed for bankruptcy protection in June, aiming to sell its assets and restructure its debt in an effort to salvage operations.

The company has issued multiple recalls this year to address issues related to door handles, faulty software, and noncompliance with safety standards.

According to Fisker’s bankruptcy plan, the manufacturer is required to remedy defective and noncompliant vehicles “without charge when the vehicle … is presented for remedy,” as highlighted in the filing.

Fisker did not immediately respond to a Reuters request for comment.

The Justice Department also pointed out that the part of the plan allowing vehicle owners to get reimbursed for out-of-pocket repairs violates the National Traffic and Motor Vehicle Safety Act.

Additionally, Fisker is under investigation by the U.S. Securities and Exchange Commission, which opposes the liquidation plan due to unclear intentions regarding the preservation of corporate records.