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Troubled electric vehicle maker Nikola files for bankruptcy protection
Headline Topics |
2025/02/18 10:05
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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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Elon Musk dodges DOGE scrutiny while expanding his power in Washington
Headline Topics |
2025/02/06 03:36
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Elon Musk made a clear promise after Donald Trump decided to put him in charge of making the government more efficient.
“It’s not going to be some sort of backroom secret thing,” Musk said last year. “It will be as transparent as possible,” maybe even streamed live online. It hasn’t worked out that way so far.
In the three weeks since the Republican president has been back in the White House, Musk has rapidly burrowed deep into federal agencies while avoiding public scrutiny of his work. He has not answered questions from journalists or attended any hearings with lawmakers. Staff members for his so-called Department of Government Efficiency, or DOGE, have sidelined career officials around Washington.
It is a profound challenge not only to business-as-usual within the federal government, which Trump campaigned on disrupting, but to concepts of consensus and transparency that are foundational in a democratic system. Musk describes himself as “White House tech support,” and he has embedded himself in an unorthodox administration where there are no discernible limits on his influence.
Donald K. Sherman, executive director of Citizens for Responsibility and Ethics in Washington, said Trump has allowed Musk to “exert unprecedented power and authority over government systems” with “maximal secrecy and little-to-no accountability.”
The White House insisted that DOGE is “extremely transparent” and shared examples of its work so far, such as canceling contracts and ending leases for underused buildings. House Republicans said the Trump administration also discovered that Social Security benefits were being paid to a dozen people listed as 150 years old.
“We’re going to find billions, hundreds of billions of dollars of fraud and abuse and, you know, the people elected me on that,” Trump said in a Fox News interview to be aired along with the Super Bowl on Sunday. He described Musk as “terrific” and said he would soon focus on the Department of Defense, the country’s largest government agency.
That is true, at least judging by Musk’s social media, where no thought appears to be suppressed. His X account is a flood of internet memes, attacks on critics and professions of loyalty to the president. He has made clear the grand scope of his ambitions, talking in existential terms about the need to reverse the federal deficit, cut government spending and roll back progressive programs.
“This administration has one chance for major reform that may never come again,” he posted on Saturday. “It’s now or never.”
Musk is used to doing things his own way. The world’s richest person, he became wealthy with the online payment service PayPal, then took over the electric car manufacturer Tesla and founded the rocket company SpaceX. More recently, he bought Twitter and rebranded it as X, cutting jobs and remaking its culture.
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Federal appeals court deliberates North Carolina Supreme Court election dispute
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2025/01/29 11:46
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[Image Credit: Pexel] by lawfirm-network.com A federal appeals panel in Richmond, Virginia, heard arguments Monday regarding the unresolved North Carolina Supreme Court election, focusing on jurisdictional issues over whether federal or state courts should decide the fate of approximately 66,000 disputed ballots. The case involves Democratic Associate Justice Allison Riggs, who currently leads Republican challenger Jefferson Griffin by 734 votes out of more than 5.5 million cast. Griffin’s attorneys argue that their client would likely win if ballots they claim were cast by ineligible voters are removed from the count. However, the State Board of Elections dismissed Griffin’s request last month to disqualify those votes. The three-judge panel of the 4th U.S. Circuit Court of Appeals deliberated for 90 minutes, questioning attorneys on whether Griffin’s ballot challenge should remain in state court or be heard in federal court. As of now, legal challenges are ongoing in both court systems, creating an unusual situation in one of the nation’s most closely watched judicial elections. The ballots in question were cast by voters whose registration records reportedly lacked either a driver’s license number or the last four digits of a Social Security number, which state law has required since 2004. If Griffin prevails, it would expand the conservative majority on the North Carolina Supreme Court from 5-2 to 6-1. Riggs remains on the court while the legal battle continues. The appeals panel has not indicated when it will issue a ruling. |
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President Trump proposes 'getting rid of FEMA' - UPDATE
Headline Topics |
2025/01/26 08:52
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by lawfirm-network.com
President Trump, during recent visits to disaster-stricken areas in California and North Carolina, has proposed the possibility of dismantling the Federal Emergency Management Agency (FEMA). He criticized FEMA as being overly bureaucratic and slow, suggesting that individual states should manage their own disaster responses, with the federal government providing financial assistance directly to them. This proposal has raised concerns among experts and lawmakers, particularly in disaster-prone states like Florida, where officials warn that without FEMA's support, handling the aftermath of powerful storms could be financially overwhelming. It's important to note that eliminating FEMA would require congressional approval, as the agency was established by an executive order under President Jimmy Carter.
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Supreme Court allows small business registration rule to take effect
Headline Topics |
2025/01/23 08:52
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by lawfirm-network.com
The Supreme Court Revives Corporate Transparency Act, Mandating Small Business Registration The Supreme Court has reinstated a key provision of the Corporate Transparency Act (CTA), requiring owners of over 32.6 million small businesses to register personal information with the Treasury Department’s Financial Crimes Enforcement Network (FinCEN). This act, designed to combat money laundering and the misuse of anonymous shell companies, was previously blocked by a federal judge in Texas and held by the 5th U.S. Circuit Court of Appeals. [Image credit: Pexel]Key Details of the Ruling:- What is Required: Small business owners must provide personal information, including photo IDs and home addresses, to FinCEN.
- Purpose: To deter financial crimes and increase transparency in corporate ownership.
- Legal Challenges: Opposed by Republican-led states, conservative groups, and business associations, the law was initially struck down on grounds that Congress overstepped its authority.
Reactions:- Supporters: Labor, environmental, and progressive groups applaud the decision as a win for transparency.
- Opponents: Business organizations express concerns about compliance challenges and legal uncertainty. The National Small Business Association and Small Business & Entrepreneurship Council have called for clarity and leniency for late filers.
Next Steps:- The Supreme Court’s decision allows enforcement to proceed while the Texas case continues.
- Advocates for repeal, including business leaders, urge Congress to reassess the mandate.
This decision marks a significant step in the federal government’s efforts to curb illicit financial activities, though its future enforcement and impact remain subjects of heated debate. by breakinglegalnews.com |
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Trump asks the Supreme Court to block sentencing in his hush money case
Headline Topics |
2025/01/09 07:59
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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 Supreme Court’s immunity decision was largely about official acts of presidents while in office.
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Amazon workers strike at multiple facilities as Teamsters seek labor contract
Headline Topics |
2024/12/19 06:51
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Workers at seven Amazon facilities went on strike Thursday, an effort by the Teamsters to pressure the e-commerce company for a labor agreement during a key shopping period.
The Teamsters say the workers, who authorized strikes in the past few days, are joining the picket line after Amazon ignored a Sunday deadline the union set for contract negotiations. Amazon says it doesn’t expect an impact on its operations during what the union calls the largest strike against the company in U.S. history.
The International Brotherhood of Teamsters say they represent nearly 10,000 workers at 10 Amazon facilities, a small portion of the 1.5 million people Amazon employs in its warehouses and corporate offices.
At one warehouse, located in New York City’s Staten Island borough, thousands of workers who voted for the Amazon Labor Union in 2022 and have since affiliated with the Teamsters. At the other facilities, employees - including many delivery drivers - have unionized with them by demonstrating majority support but without holding government-administered elections.
The strikes happening Thursday are taking place at one Amazon warehouse in San Francisco, California, and six delivery stations in southern California, New York City; Atlanta, Georgia, and Skokie, Illinois, according to the union’s announcement. Amazon workers at the other facilities are “prepared to join,” the union said.
“Amazon is pushing its workers closer to the picket line by failing to show them the respect they have earned,” Teamsters General President Sean M. O’Brien said in a statement.
The Seattle-based online retailer has been seeking to re-do the election that led to the union victory at the warehouse on Staten Island, which the Teamsters now represent. In the process, the company has filed a lawsuit challenging the constitutionality of the National Labor Relations Board. |
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