Tevva sues for $75m over failed merger
UK electric and hydrogen truck developer Tevva Motors is filing a lawsuit in the US following its failed merger with ElectraMeccanica Vehicles (EMV).
The suit in the United States District Court in Arizona by Tevva is against ElectraMeccanica as well as EMV’s CEO Susan Docherty.
“The lawsuit exposes how EMV offered spurious, defamatory allegations in a thinly-veiled attempt to justify its abrupt termination of a binding merger agreement, 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,” said Tevva.
The company is seeking $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 damages) through dividends or executive compensation.
Tevva says its operations and business plans are not dependent upon the lawsuit and, like EMV, it has re-engaged with a number of investors and public companies.
“Tevva is confident that it will secure both medium and long-term funding that will allow it to complete its business plan and transform the commercial truck industry,” said the company.
ElectraMeccanica declined to comment.