Faraday Future Intelligent Electric Inc. (“Faraday Future” or the “Company”) (NASDAQ: FFIE), a California-based global shared intelligent electric mobility ecosystem company, today announced that the special committee of independent Company directors (the “Special Committee”) has completed its previously announced investigation into allegations of inaccurate disclosures, including claims contained in a short seller report issued during October 2021.
The Special Committee did identify certain inconsistencies in statements to investors and certain weaknesses in its corporate controls and culture, as detailed in the Form 8-K.
Based on its work, the Special Committee, assisted by independent legal counsel, Kirkland & Ellis LLP, and a forensic accounting firm, Alvarez & Marsal, concluded that, except as described in the Company’s Form 8-K filed today (the “Form 8-K”) with the Securities and Exchange Commission (the “SEC”), other substantive allegations of inaccurate disclosures that the Special Committee evaluated, including those made in the short seller report, were not supported by the evidence reviewed.
In connection with its review, the Special Committee recommended certain remedial actions to enhance oversight and corporate governance, including the appointment of Sue Swenson, currently the Audit Committee Chairperson, to the newly created position of Executive Chairperson.
Ms. Swenson’s appointment will be effective immediately and she will have oversight of the senior executive leadership team. Additional investigative and remedial work based on the Special Committee’s findings and actions will be performed under the direction of Mr. Swenson as Executive Chairperson and reporting to the Audit Committee. The Special Committee also approved strengthening internal controls including hiring a chief compliance officer and hiring of additional financial and accounting support. Additional details regarding the Special Committee’s findings and the remedial actions taken by the Special Committee and Board of Directors can be found in the Form 8-K.
The Company is working diligently to file its third quarter 2021 Form 10-Q and amended Registration Statement on Form S-1 (File No. 333-258993) as soon as possible.
Ms. Swenson has several decades of senior level executive leadership experience, including serving as Chairperson at FirstNet, Chairperson and Chief Executive Officer of Inseego Corporation (Nasdaq: INSG), President and Chief Operating Officer of T-Mobile US, Inc, President of Leap Wireless International, Inc., and Chief Executive Officer of Cricket Communications, Inc. Ms. Swenson also served as Chief Executive Officer of Sage North America and on the board of directors of Wells Fargo. In addition, Ms. Swenson currently serves on the board of Harmonic, Inc. (Nasdaq: HLIT), Vislink Technologies, Inc. (Nasdaq: VISL), and Sonim Technologies Inc. (Nasdaq: SONM).