DOE Blasts $225M Suit By Electric Car, Battery Cos.

By Jeff Overley (April 29, 2013, 6:19 PM EDT) -- The U.S. Department of Energy on Friday asked a Washington federal judge to toss a $225 million lawsuit alleging loan applications were rejected because of political cronyism, saying a failed electric vehicle maker lacked standing and that a sister company sued prematurely.

In its motion to dismiss, the DOE argued that because XP Vehicles Inc. has been dissolved, it couldn't sue over denial of its request for $40 million in funding to build lightweight sport utility vehicles from polymer plastics instead of traditional metals.

"As a dissolved corporation, XPV cannot manufacture such vehicles and is thus ineligible for a loan premised...

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