- Canoo has been hit with at least two lawsuits over their alleged failure to pay for goods and services.
- One company is seeking $10,600 while the other wants over $573,000.
- Canoo lost a boatload of money last year and only built 22 vehicles.
We haven’t heard much from Canoo lately, but it appears things aren’t going well. Quite the opposite as a local television station has found the company is being sued for missed payments.
According to one lawsuit discovered by Fox 25, Canoo and Saxum Strategic Communications signed an agreement in August of 2023 which would see the agency provide communication services to the automaker. The contract called for a minimum monthly spend of $5,000 and the lawsuit claims Canoo breached the agreement as they stopped paying in October of that year.
More: Canoo Made $886,000 In 2023, Spent $1.7 Million On CEO’s Private Jet
Saxum says they’re owed $10,600 but Canoo has “failed or refused to pay for services rendered.” The lawsuit also states the automaker is on the hook for legal fees as this was included in the contract.
Saxum isn’t alone as the station found another lawsuit with higher stakes. It was filed in May of 2024 by Air Capital Equipment.
Their lawsuit claims they entered into an “open account relationship” with Canoo in July of 2023 and agreed to provide materials to the automaker on credit. The firm reportedly racked up $573,142.82 as of May and that amount is “past due.”
Speaking of which, the company has incurred thousands of dollars in late fees. The first appears to have been charged in October of 2023 for $5,779.32. That’s interesting because this is the same month Saxum said Canoo stopped paying them.
The station said Canoo denied owing that much money and filed a motion for arbitration. Air Capital Equipment wants that denied and a hearing is set for late this month.
While it remains to be seen how the lawsuits will pan out, it doesn’t paint a pretty picture for Canoo. That’s been par the course and their 2023 financial results revealed they only built 22 vehicles last year. Canoo also posted a $302.6 million loss, although they bragged about a “$184.2 million annual adjusted EBITDA improvement from $(408.6) million in 2022 to $(224.4) million in 2023.”
H/T to Reddit
