Electric Car Cos. Accuse DOE Of Cronyism In $225M Suit

Law360, New York (January 10, 2013, 8:28 PM EST) -- A failed electric car manufacturer and its sister company are seeking $225 million in damages in a suit filed Thursday claiming the U.S. Department of Energy rejected their applications for loan money to favor “politically connected” rivals like Fisker Motors Inc.

XP Vehicles Inc. and battery maker Limnia Inc. claim the agency's $25 billion Advanced Technology Vehicles Manufacturing loan program was fixed to award loans only to “politically-connected government cronies” with access to high-level Obama administration officials.

The suit marks a new attack on Energy Secretary...
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