Charge Enterprises has filed a lawsuit against former Chairman Kenneth Orr and his business, KORR Acquisitions Group, according to an SEC filing.
The lawsuit alleges that KORR "improperly shifted" Charge Enterprises funds "to accounts for the benefit of other companies." Charge Enterprises, an electric vehicle (EV) charging infrastructure company, is seeking damages in excess of $15 million, the lawsuit states.
Sustainable Tech Partner reached out to KORR Acquisitions Group for comment on January 12, 2024, and has not received a reply as of January 13, 2024. We will update this article if/when we receive a comment.
Kenneth Orr co-founded Charge Enterprises in 2020, according to his LinkedIn profile, and was chairman until September 2021, according to a company press release.
Charge Enterprises 2023 Recap: CEO Change, Revenue Shortfall
Charge Enterprise faced multiple business pressures in 2023. Co-founder and former CEO Andrew Fox resigned his chairman and CEO posts in August 2023 after activist firm Arena Investors demanded changes to address the EV charging infrastructure company's sagging stock price.
Charge Enterprises' revenue was $132.3 million in Q3 of 2023, compared with $185.9 million in the third quarter of 2022, according to a November 8, 2023 earnings report.
Around that time, Charge Enterprises began considering a range of financial moves --including restructuring or refinancing our debt, seeking additional debt or equity capital, reducing or delaying our business activities and strategic initiatives, or selling assets, other strategic transactions and/or other measures.
Electric Vehicle (EV) Market Challenges: Slowing U.S. Growth
The overall electric vehicle (EV) market has faced growing headwinds in recent months. Sales of EVs are still growing -- but not as quickly as previously forecast. Among the data points to note: In early 2023, the average EV sold after 36 days on a dealer's lot. That figured more than doubled to 80 days in September 2023, according to a Cloud Theory EV report.
Meanwhile, EV charging network buildouts have faced reliability and competitive challenges. Amid that backdrop, numerous EV car companies are embracing Tesla's North America Charging Standard (NACS) while also building EV charging alliances without Telsa.
Moreover, bankruptcies in the electric vehicle market are piling up. Examples include WM Motors of China, as well as Lordstown Motors and Proterra.
More recently, another EV charging company called ChargePoint announced layoffs in January of 2024.
In terms of the lawsuit involving Charge Enterprises vs. Kenneth Orr and KORR, we'll be watching for status updates in the case.