Saturday, April 13, 2024

Founder of bankrupt car brand gets DKK 1.2 million. kroner

Steve Burns, who founded Lordstown Motors in 2018, has entered into a settlement with the legal system in the United States after he lied about the car brand's order books.

Lordstown Motors' order books were not at all as stuffed as Steve Burns, who founded the brand in 2018, otherwise told both the outside world and potential investors.

It is more than clear, now that the car brand has had to turn some around in bankruptcy. Still, Steve Burns widely reported that the brand had more than 100,000 car pre-orders.

Reuters writes that.

The few pre-orders Lordstown Motors actually had in the order book were orders from middlemen, such as car dealers, with whom the brand had entered into purchase agreements.

READ ALSO: 38 percent of these Danes fear having their car confiscated

And now Steve Burns has to pay for his log. Precisely, he has agreed to pay 175,000 dollars, which corresponds to 1.2 million Danish kroner, in a settlement.

However, Burns needs to find a lot more money. The founder left the company already in March 2021. But after the car brand's bankruptcy last June, he entered into an agreement to buy the rest of the project for 10 million dollars.

This corresponds to just under DKK 69 million. Where that money will come from and what Burns will use a dead car brand for, the story does not say anything about.

Read more news from and about Lordstown Motors right here!

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