1. District Court upheld claims against Foxconn in NRDE's litigation. 2. Nine claims including fraud and breach survived the motion to dismiss. 3. Company believes Foxconn caused significant harm to its operations. 4. Litigation outcome remains uncertain due to limited resources. 5. Chairman expressed satisfaction with the court's decision.
The survival of nine claims positions NRDE favorably against Foxconn. Positive court affirmation historically boosts investor confidence and can stabilize stock price.
The court ruling provides a clearer path for litigation success, which may enhance NRDE's market prospects. Despite litigation costs, a favorable ruling can restore investor trust.
As litigation progresses, clarity on outcomes could significantly impact NRDE’s valuation. Historical parallels with litigation outcomes affecting stock prices suggest delayed impacts.
NEW YORK, Sept. 15, 2025 /PRNewswire/ -- Nu Ride Inc. ("Nu Ride" or the "Company") (OTC:NRDE), formerly known as Lordstown Motors Corp., announced that on September 12, 2025, the United States District Court for the District of Delaware affirmed the Bankruptcy Court's decision partially denying and partially granting the Foxconn Adversary Motion to Dismiss. Accordingly, as found by the Bankruptcy Court, nine of the Company's claims continue to survive the motion to dismiss, including without limitation claims for fraud, breach of the investment agreement, and tortious interference.
Andrew L. Sole, Chairman of the Board, remarked, "We are pleased that the District Court affirmed the Bankruptcy Court decision."
As previously disclosed, on June 27, 2023, the Company commenced an adversary proceeding against Foxconn (the "Foxconn Litigation") in the United States Bankruptcy Court for the District of Delaware seeking relief for fraudulent and tortious conduct as well as breaches of the Investment Agreement and other agreements entered into by the parties that the Company believes were committed by Foxconn. On September 29, 2023, Foxconn filed a motion to dismiss all counts of the Foxconn Litigation and brief in support of the same (the "Foxconn Adversary Motion to Dismiss"), asserting that all of the Company's claims are subject to binding arbitration provisions and that the Company has failed to state a claim for relief. On August 1, 2024, the Bankruptcy Court entered an opinion and order partially denying and partially granting the Foxconn Adversary Motion to Dismiss, which was subsequently amended on October 1, 2024. Nine of the Company's claims survived the motion to dismiss on the grounds that the Company pled viable claims against Foxconn and the claims were not subject to mandatory arbitration. The Court also dismissed two of the Company's claims in favor of arbitration, and allowed that the two dismissed claims should proceed to arbitration. The order was appealed by Foxconn in the United States District Court for the District of Delaware, and the Bankruptcy Court stayed litigation of the claims that it ruled were not subject to arbitration pending that appeal.
The Company continues to believe that Foxconn's actions have caused substantial harm to the Company's operations and prospects and caused significant damages and intends to vigorously continue pursuing this litigation. However, no assurances can be provided as to the Company having sufficient resources to pursue the Foxconn Litigation, the outcome or recoveries, if any.
Additional information about the Company is available on the company's website (www.nurideinc.com) and in the Company's filings with the U.S. Securities and Exchange Commission, available at www.sec.gov/edgar.
Please send inquiries to inquiries@nurideinc.com.
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SOURCE Nu Ride Inc.