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FF was sued by major shareholders, demanding the dismissal of two board members
court documents show that Faraday Future (Faraday Future) shareholder FF Top Holdings filed a lawsuit against the electric vehicle startup, demanding the dismissal of two board members. The move led to a further escalation in the company's board reshuffle battle.
FF, already facing criticism over the delay in production of the FF 91 luxury electric car, is now at risk of being forced to fire executive chairman Susan Swenson and director Brian Crawridge under pressure from litigation (Brian Krolicki).
The lawsuit was formally filed in the U.S. Court of Chancery in Delaware on Monday. FF Top Holdings, an organization of FF shareholders, holds more than 20% of the company's equity and about 36% of voting rights. The group said FF's "board was facing a leadership crisis".
FF Top Holdings also added that "the current board of directors has driven the company to a dead end."
FF Top Holdings said in a separate filing with U.S. securities regulators that it had written to FF to nominate Li Han and Xin He to replace Swenson and Crawridge.
Last month, multiple FF employees called on the company's board and shareholders to fire Swenson, accusing the executive chairman of trying to "push the company into bankruptcy and restructuring."
FF Top Holdings told FF earlier this month that it wanted them to fire Swenson.
Headquartered in Los Angeles, FF has been battling high costs and supply chain disruptions that have delayed production of the FF 91 until the fourth quarter of 2022.
To make matters worse, PwC resigned last month as FF's auditor, citing a lack of effective internal controls at FF.
Since FF's backdoor listing in July last year, its stock price has plummeted by about 93%.
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