Tevva Motors, has announced it is filing a lawsuit in the United States District Court in Arizona against ElectraMeccanica Vehicles (EMV) as well as the company’s CEO Susan Docherty seeking ”redress for the improper and unmerited purported termination of the binding merger arrangement agreement with Tevva”.
The announcement issued by Tevva explains, ”the lawsuit exposes how EMV offered spurious, defamatory allegations in a thinly-veiled attempt to justify its abrupt termination of a binding merger agreement with Tevva – a merger agreement that was the product of thousands of hours of time spent by both parties evaluating and structuring a mutually beneficial business combination”.
The lawsuit seeks extensive remedies, including $75 million in damages, an injunction blocking EMV from entering into an alternative merger agreement, and a protective order preventing EMV from dissipating its cash (which will be needed to pay Tevva’s damages) through dividends, executive compensation, and similar wasteful actions.
Tevva has given EMV until 17 November, 2023, to reach a solution to this situation.
Seeking to reassure its customers and suppliers, Tevva has pointed out its operations and business plans are not dependent upon the lawsuit and the company has re-engaged with a number of investors and public companies to secure the medium and long-term funding it requires.
