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Troubled electric vehicle maker Nikola files for bankruptcy protection
Legal News Feed |
2025/02/20 10:15
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Troubled electric vehicle maker Nikola has filed for Chapter 11 bankruptcy protection months after saying that it would likely run out of cash early this year.
Nikola was a hot start-up and rising star on Wall Street before becoming enmeshed in scandal and its founder was convicted in 2022 for misleading investors about the Arizona company’s technology.
At the trial of founder Trevor Milton, prosecutors say a company video of a prototype truck appearing to be driven down a desert highway was actually a video of a nonfunctioning Nikola that had been rolled down a hill.
But the hype around the company was immense. In 2020, Nikola was valued at around $30 billion, exceeding the market capitalization of Ford Motor Co.
Nikola filed for protection in the United States Bankruptcy Court for the District of Delaware and said Wednesday that it has also filed a motion seeking approval to pursue an auction and sale of the business.
The company has about $47 million in cash on hand. rolled
Nikola Corp. plans to to continue limited service and support operations for vehicles on the road, including fueling operations through the end of March, subject to court approval. The company said that it will need to raise more funding to support those types of activities after that time.
“Like other companies in the electric vehicle industry, we have faced various market and macroeconomic factors that have impacted our ability to operate,” CEO Steve Girsky said in a statement.
The executive said the company has made efforts in recent months to raise funds and reduce liabilities and preserve cash, but that it hasn’t been enough.
“The Board has determined that Chapter 11 represents the best possible path forward under the circumstances,” Girsky said.
In December 2023 founder Trevor Milton was sentenced to four years in prison after being convicted of exaggerating claims about his company’s production of zero-emission 18-wheel trucks, leading to sizeable losses for investors.
Milton was convicted of fraud charges, portrayed by prosecutors as a con man six years after he had founded the company in a basement in Utah.
Prosecutors said Milton falsely claimed to have built its own revolutionary truck that was actually a General Motors product with Nikola’s logo stamped onto it.
Called as a government witness, Nikola’s CEO testified that Milton “was prone to exaggeration” when pitching his venture to investors.
Milton resigned in 2020 amid reports of fraud that sent Nikola’s stock prices into a tailspin. Investors suffered heavy losses as reports questioned Milton’s claims that the company had already produced zero-emission 18-wheel trucks.
The company paid $125 million in 2021 to settle a civil case against it by the SEC. Nikola didn’t admit any wrongdoing.
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Trump asks the Supreme Court to block sentencing in his hush money case
Legal News Feed |
2025/01/07 06:58
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President-elect Donald Trump is asking the Supreme Court to call off Friday’s sentencing in his hush money case in New York.
Trump’s lawyers turned to the nation’s highest court on Wednesday after New York courts refused to postpone the sentencing by Judge Juan M. Merchan, who presided over Trump’s trial and conviction last May on 34 felony counts of falsifying business records. Trump has denied wrongdoing.
The justices asked for a response from prosecutors by Thursday morning. Trump’s team sought an immediate stay of the scheduled sentencing, saying it would wrongly restrict him as he prepares to take office. While Merchan has indicated he will not impose jail time, fines or probation, Trump’s lawyers argued a felony conviction would still have intolerable side effects.
The sentencing should be delayed as he appeals the conviction to “prevent grave injustice and harm to the institution of the Presidency and the operations of the federal government,” they argued.
The emergency motion is from lawyers John Sauer, Trump’s pick for solicitor general, who represents the government before the high court, and Todd Blanche, in line to be the second-ranking official at the Justice Department.
They also pointed to the Supreme Court ruling giving Trump and other presidents broad immunity from prosecutions over their actions in office, saying it supports their argument that his New York conviction should be overturned.
Their filing said the New York trial court “lacks authority to impose sentence and judgment on President Trump — or conduct any further criminal proceedings against him— until the resolution of his underlying appeal raising substantial claims of Presidential immunity, including by review in this Court if necessary.”
The Republican president-elect’s spokesman, Steven Cheung, called for the case to be dismissed in a statement. Trump simultaneously filed an emergency appeal in front of New York’s highest court.
The Manhattan district attorney’s office, meanwhile, said it will respond in court papers. Trump’s convictions arose from what prosecutors said was an attempt to cover up a $130,000 hush money payment to porn actor Stormy Daniels just before the 2016 presidential election.
Daniels claims she had a sexual encounter with Trump in 2006. He denies it.
The Supreme Court’s immunity opinion came in a separate election interference case against him, but Trump’s lawyers say it means some of the evidence used against him in his hush money trial should have been shielded by presidential immunity. That includes testimony from some White House aides and social media posts made while he was in office.
Merchan has disagreed, finding they would qualify as personal business. The Suprem |
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US court to review civil rights lawsuit alleging environmental racism
Legal News Feed |
2024/10/07 13:27
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A federal appellate court is set to hear oral arguments Monday in a civil rights lawsuit alleging a south Louisiana parish engaged in racist land-use policies to place polluting industries in majority-Black communities.
The Fifth Circuit Court of Appeals in New Orleans is reviewing a lawsuit filed by community groups claiming St. James Parish “intentionally discriminated against Black residents” by encouraging industrial facilities to be built in areas with predominantly Black populations “while explicitly sparing White residents from the risk of environmental harm.”
The groups, Inclusive Louisiana, Rise St. James and Mt. Triumph Baptist Church, seek a halt to future industrial development in the parish.
The plaintiffs note that 20 of the 24 industrial facilities were in two sections of the parish with majority-Black populations when they filed the complaint in March 2023.
The parish is located along a heavily industrialized stretch of the Mississippi River between New Orleans and Baton Rouge, Louisiana, known as the Chemical Corridor, often referred to by environmental groups as “Cancer Alley” because of the high levels of suspected cancer-causing pollution emitted there.
The lawsuit comes as the federal government has taken steps during the Biden administration to address the legacy of environmental racism. Federal officials have written stricter environmental protections and committed tens of billions of dollars in funding.
In the Louisiana case, U.S. District Judge Carl Barbier of the Eastern District of Louisiana in November 2023 dismissed the lawsuit largely on procedural grounds, ruling the plaintiffs had filed their complaint too late. But he added, “this Court cannot say that their claims lack a basis in fact or rely on a meritless legal theory.”
Barbier said the lawsuit hinged primarily on the parish’s 2014 land-use plan, which generally shielded white neighborhoods from industrial development and left majority-Black neighborhoods, schools and churches without the same protections. The plan also described largely Black sections of the parish as “future industrial” sites. The plaintiffs missed the legal window to sue the parish, the judge ruled.
Yet the parish’s land-use plan is just one piece of evidence among many revealing ongoing discrimination against Black residents in the parish, said Pamela Spees, a lawyer for the Center of Constitutional Rights representing the plaintiffs. They are challenging Barbier’s ruling under the “continuing violations” doctrine on the grounds that discriminatory parish governance persists, allowing for industrial expansion in primarily Black areas.
The lawsuit highlights the parish’s decision in August 2022 to impose a moratorium on large solar complexes after a proposed 3,900-acre (1,580-hectare) solar project upset residents of the mostly white neighborhood of Vacherie, who expressed concerns about lowering property values and debris from storms. The parish did not take up a request for a moratorium on heavy industrial expansion raised by the plaintiffs, the lawsuit states.
These community members “have tried at every turn to simply have their humanity and dignity be seen and acknowledged,” Spees said. “That’s just been completely disregarded by the local government and has been for generations.”
Another part of the complaint argues the parish failed to identify and protect the likely hundreds of burial sites of enslaved people by allowing industrial facilities to build on and limit access to the areas, preventing the descendants of slaves from memorializing the sites. The federal judge tossed out that part of the lawsuit, noting the sites were on private property not owned by the parish.
At its core, the complaint alleges civil rights violations under the 13th and 14th amendments, stating the land-use system in the parish allowing for industrial buildout primarily in majority-Black communities remains shaped by the history of slavery, white supremacy and Jim Crow laws and governance.
Lawyers for St. James Parish said the lawsuit employed overreaching claims and “inflammatory rhetoric.” St. James Parish did not respond to a request for comment.
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Three Americans in alleged coup attempt appear in Congo military court
Legal News Feed |
2024/06/07 15:16
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Three Americans accused of being involved in last month’s coup attempt in Congo appeared in a military court in the country’s capital, Kinshasa, on Friday, along with dozens of other defendants who were lined up on plastic chairs before the judge on the first day of the hearing.
The proceedings before the open-air military court were broadcast live on the local television channel.
Six people were killed during the botched coup attempt led by the little-known opposition figure Christian Malanga last month that targeted the presidential palace and a close ally of President Felix Tshisekedi. Malanga was shot and killed soon after live-streaming the attack for resisting arrest, the Congolese army said.
The defendants face a number of charges, many punishable by death, including terrorism, murder and criminal association. The court said there were 53 names on the list, but the names of Malanga and one other person were removed after death certificates were produced.
Alongside Malanga’s 21-year-old son Marcel Malanga — who is a U.S. citizen — two other Americans are on trial for their alleged role in the attack. All three requested an interpreter to translate the proceedings from French to English.
Malanga’s son was the first to be questioned by the judge, who asked him to confirm his name and other personal details. The military official chosen to translate for him was apparently unable to understand English well.
Eventually, a journalist was selected from the media to replace him, but he too had trouble translating numbers and the details of the proceedings.
“He’s not interpreting right. We need a different interpreter who understands English, please,” Marcel Malanga told the judge after the journalist incorrectly translated his zip code.
But no other translator emerged and the defendants had to make do with the journalist, who worked for the national radio. Malanga appeared frustrated and defiant as the interview stumbled ahead.
Tyler Thompson Jr, 21, flew to Africa from Utah with the younger Malanga for what his family believed was a vacation, with all expenses paid by the elder Malanga. The young men had played high school football together in Salt Lake City suburbs. Other teammates accused Marcel of offering up to $100,000 to join him on a “security job” in Congo.
Thompson appeared before the court with a shaved head and sores on his skin, looking nervous and lost as he confirmed his name and other personal details to the judge.
His stepmother, Miranda Thompson, told The Associated Press that the family found out about the hearing too late to arrange travel to Congo but hoped to be present for future court dates. Before this week, the family had no proof he was still alive.
“We’re thrilled with the confirmation,” she said.
Miranda Thompson had worried that her stepson might not even know that his family knew he’d been arrested. On Monday, the U.S. Embassy in Congo told the AP it had yet to gain access to the American prisoners to provide consular services before the trial. |
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