Tevva Motors Limited is filing a lawsuit in the United States District Court in Arizona against ElectraMeccanica Vehicles Corp. as well as EMV’s CEO Susan Docherty seeking redress for the improper and unmerited purported termination of the binding merger arrangement agreement with Tevva. 

The lawsuit exposes how ElectraMeccanica offered spurious, defamatory allegations in a thinly-veiled attempt to justify its abrupt termination of a binding merger agreement with Tevva – 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.

Tevva has chosen to exercise restraint by giving ElectraMeccanica until November 17, 2023, to reach an acceptable solution to this situation. The lawsuit appropriately seeks extensive remedies, such as $75 million in damages, an injunction blocking EMV from entering into an alternative merger agreement, and a protective order preventing ElectraMeccanica from dissipating its cash (which will be needed to pay Tevva’s damages) through dividends, executive compensation, and similar wasteful actions.

Although the Lawsuit will allow Tevva to seek redress for the damages that have been caused by EMV’s wrongful conduct, Tevva’s operations and business plans are not dependent upon the lawsuit. In light of the breakdown in the relationship with EMV, Tevva has re-engaged with a number of investors and public companies who are seeking attractive, strategic merger partners such as Tevva. 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

Highlights

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