It was not a smooth comeback for the DeLorean Motor Company. It has already faced two lawsuits, one in 2015 and another in 2017, while the Alpha5 EV announcement prompted John DeLorean’s daughter to publicly speak out against the Texas-based company’s association with the Original DeLorean. And now another complaint is being filed against DMC – this time from California-based electric vehicle maker Karma Automotive.
Filed in U.S. District Court for the Southern District of Texas, the federal lawsuit accuses four former Karma Automotive employees of stealing trade secrets and creating a new company that will reinvent the popular DeLorean vehicle for the vehicle age. electrical.
The lawsuit names current DeLorean Motors Company CEO Joost de Vries, chief operating officer Alan Yuan, chief marketing officer Troy Beetz and vice president of brand and creative Neilo Harris. The four were former employees of Karma Automotive and were assigned to a DeLorean revival project called “Project 88”.
According to the lawsuit, the four executives allegedly solicited investments and started a new business while still employed by Karma. They allegedly used Karma’s email addresses and cars in their business activities, which allegedly took place between December 2020 and February 2022. The four were also accused of withholding information from executives of Karma Automotive to ensure the failure of Project 88.
After de Vries resigned from Karma Automotive, the four executives founded DeLorean Motors Reimagined LLC in November 2021. However, Yuan, Beetz and Harris remained employed by Karma until February 2022. The four were being sued for breach of contract, breach of fiduciary duty, fraud and tortious interference. The violation of federal and state laws was claimed by Karma Automotive.
DeLorean Motors Reimagined LLC sells cars as DeLorean Motor Company, which launched the Alpha5 EV this year. The electric coupe will be presented to the public at Pebble Beach this weekend. DMC revealed three more concepts under the Alpha name in July.