District Court Affirms Bankruptcy Decision Allowing Nu Ride Inc.'s Adversary Claims Against Foxconn to Proceed

Rhea-AI Summary

Nu Ride Inc. (OTCMKTS: NRDE), formerly Lordstown Motors Corp., received affirmation from the U.S. District Court of Delaware regarding a previous Bankruptcy Court decision in its ongoing litigation against Foxconn. The court ruling, issued on September 12, 2025, allows nine of the company's claims to proceed, including allegations of fraud, breach of investment agreement, and tortious interference.

The litigation, which began on June 27, 2023, stems from alleged fraudulent and tortious conduct by Foxconn. While two claims were dismissed in favor of arbitration, the majority of Nu Ride's claims survived Foxconn's motion to dismiss. The company maintains that Foxconn's actions have significantly damaged its operations and prospects, though it cautions that there are no guarantees regarding sufficient resources to pursue the litigation or potential recoveries.

Positive

• Nine key claims against Foxconn survived the motion to dismiss
• Court affirmed company's right to pursue fraud and breach of contract claims
• Legal pathway cleared to seek damages for alleged harmful actions by Foxconn

Negative

• Company warns it may not have sufficient resources to pursue litigation
• Two claims were dismissed in favor of arbitration
• No assurance of successful outcome or financial recovery

AI-generated analysis. How Rhea-AI works. Not financial advice.

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NEW YORK, Sept. 15, 2025 /PRNewswire/ -- Nu Ride Inc. ("Nu Ride" or the "Company") (OTCMKTS: 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.

View original content:https://www.prnewswire.com/news-releases/district-court-affirms-bankruptcy-decision-allowing-nu-ride-incs-adversary-claims-against-foxconn-to-proceed-302556810.html

SOURCE Nu Ride Inc.

FAQ

What did the District Court rule in Nu Ride's (NRDE) case against Foxconn?

The District Court affirmed the Bankruptcy Court's decision that allows nine of Nu Ride's claims against Foxconn to proceed, including claims for fraud, breach of investment agreement, and tortious interference.

What are the main claims Nu Ride (NRDE) is pursuing against Foxconn?

Nu Ride is pursuing claims for fraud, breach of the investment agreement, and tortious interference, among others, alleging Foxconn's actions caused substantial harm to the company's operations and prospects.

When did Nu Ride (NRDE) initiate the legal proceedings against Foxconn?

Nu Ride initiated the adversary proceeding against Foxconn on June 27, 2023 in the United States Bankruptcy Court for the District of Delaware.

What are the risks in Nu Ride's (NRDE) litigation against Foxconn?

Nu Ride has warned that it may not have sufficient resources to pursue the litigation, and there are no assurances regarding the outcome or potential financial recoveries.

What happened to the remaining claims in Nu Ride's (NRDE) case against Foxconn?

Two claims were dismissed in favor of arbitration, while the remaining nine claims were allowed to proceed in court after surviving the motion to dismiss.