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Two internal whistleblowers at Faraday Future claim the tumultuous EV company has been lie about some of the few sales it has announce to engagement . They also claim founder Jia Yueting has “ weaponized ” the EV inauguration ’s HR department to retaliate against anyone who speaks up about these alleged misrepresentations .
The employees , Jose Guerrero and Victoria Xie , have made those claims in a distich of freshly filed lawsuits against Faraday Future and Jia — as well as the company ’s school principal of HR , Nan Yang — in Los Angeles Superior Court , alleging unlawful termination , rift of contract , and botheration of worked up distress .
Both lawsuits also foreground what has been the fundamental latent hostility of Faraday Future : that its founder , Jia , allegedly continues to aver control over the company despite having been sidelined in 2022 as theresult of an home probe .
The previously unreported suits occur as Faraday Future has continued to furlough and lay off employees to save what fiddling Johnny Cash it has left , to the point in time that it wasnearly evictedfrom its Los Angeles headquarters after it missed multiple lease payments . This is all happening while the company is facing active probe from the Securities and Exchange Commission and the Department of Justice .
“ FF takes the allegation made in these two cause by previous employee very seriously , ” a spokesperson for Faraday Future said in an emailed statement . “ FF believe on merit it has strong defense to the alleged claims and will engage all avenue and remedies uncommitted to protect and defend itself and the Company ’s dedicated employee against all allegation including character attack . ”
Jia , in an email to TechCrunch , say : “ I consider that there are legion delusive statement and calumniatory allegations in the said complaints . I plan to lodge counter - cause against the parties necessitate . ”
Guerrero and Xie , through counsellor , go down to comment beyond the allegation in the filing .
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Allegations of faked sales and retaliation
In an internal whistleblower letter submitted to the company ’s worldwide counsel on December 6 , 2023 , Guerrero and Xie claimed that Faraday Future lied about the first four publically touted cut-rate sale of its electric SUV , the FF91 .
Guerrero , who was a senior theatre director of sales and aftersales at Faraday Future , and Xie , who was the companionship ’s “ go - to - market project director and launch manager , ” say that the company foretell these deliveries before the sale process had been finish . They take three of the four were never fully paid for , at least at the time the whistleblower alphabetic character was posit , and the fourth was only paid for “ more than 60 sidereal day after the ‘ sales event ’ was announced . ” Faraday Future has since claimed to have delivered10 vehiclesin all of 2023 .
Guerrero and Xie claim that when sale faculty press back against these “ untimely ” announcements , the leadership squad in Jia ’s department “ continued to cite the motivation to announce sales to boost the Company ’s share price and subjected staff who advance submission concerns to retaliatory hour actions . ”
Guerrero and Xie go on to claim that Faraday Future executed these sale agreement with its initial customers without performing pre - delivery inspections on the vehicle , and that one of Jia ’s lieutenants dismissed concerns about this . They say the sales team was pressured to give in DMV paperwork “ without the required policy and cash payment . ” They also claim Jia ’s squad was sending “ non - road approved software system ” to these other customer cars and that they were not right documenting or let out the software ’s sack notes to the National Highway Traffic Safety Administration , in potential violation of the Transportation Recall Enhancement , Accountability and Documentation Act .
What ’s more , they claim Faraday Future has been performing repairs on these early customer vehicles without proper corroboration or work dominance , which he says could put the company ’s license with the California Bureau of Automotive Repair at endangerment .
“ When [ Defendant Mr. Jia ] and his intrust traffic circle inquired about regulatory requirements , it was done so with the exonerated intention to ‘ creatively ’ surround the rules , ” they claim in the lawsuits .
Xie says in her complaint that she was fired “ in retaliation for her protected whistleblowing ” just two days after the letter was submitted , and claims Jia and Yang were directly involved in her discharge . Xie essay to file an arbitration call against the company on December 22 , accord to the ailment . But Faraday Future did n’t bear the required arbitration fees and missed the 30 - day window to do so , thus making it possible for her to file a case in Superior Court , the charge claims .
Faraday Future allegedly raise Guerrero on January 18 in revenge for speak up , according to his charge . He , too , filed an arbitration claim against the fellowship , and when Faraday Future did not pay the fee , he was similarly loose to charge a lawsuit in Superior Court .
Jia ’s control over Faraday Future has always been a spiny issue . As previously reported , Jiasecretly ran the companyin its earliest years despite the company listing someone else as its CEO on newspaper . He did in the end take over as CEO , but he fetch in a former BMW executive to fill that theatrical role in 2019 to appeal to investors . The fellowship ultimately went public in 2021 by blend with a special use acquisition caller .
Jia was dress down as the result of an internal investigation that began in late 2021 . That probe bet into claims from a short - seller that Faraday Future had overstated the number of preorders for its vehicles , as well as a lack of proper disclosures around the founder ’s movement of money in and out of the company . In 2022 , hoi polloi close to Jia helpedlead a boardroom coupall while being enquire by the SEC and the DOJ .
Jia is still not CEO , but Guerrero and Xie claim in their case that he “ direct a shadow organization ” that controls the company ’s lot . They say he and his believe deputy meet at one of themansions he purchasedon the Pacific coastline nearly every week .
“ All major operational decision within key office of the job , including human resources , budget allocation , vehicle release , and the financial Service , are directed and approved by Jia , ” they lay claim in the case .
you could readGuerrero ’s suit here , andXie ’s lawsuit here .
This narration has been update with a comment from Faraday Future and from founder Jia Yueting .
