Bollinger Innovations, formerly Mullen Automotive a once-promising electric truck manufacturer based in suburban Detroit, is under mounting financial and legal strain just as it attempts to reboot its business with a corporate name change, reverse stock split, and leadership overhaul.
Following a recent 1-for-250 reverse stock split—effective August 4 and designed to boost its share price above the Nasdaq’s $1 minimum bid threshold—the company, formerly Bollinger Motors and now operating as Bollinger Innovations (NASDAQ: BINI), continues to be embroiled in a series of supplier lawsuits claiming over $5 million in unpaid invoices.
In the latest of six suits filed since March in Oakland County Circuit Court, Tool House Inc., a Wisconsin-based equipment provider, alleges that Bollinger failed to pay $1.6 million for tools and installation support delivered in 2023. The complaint underscores what has become a common refrain among vendors: that they fulfilled their obligations, but the automaker has withheld payment.
“Despite Tool House’s repeated demands for payment, defendant has failed and refused to pay the principal balance,” the filing states.
The lawsuits cast a long shadow over CEO David Michery’s attempts to stabilize the startup. Michery, who heads Mullen Automotive and merged it with Bollinger in early July, acknowledged in a June interview that the company had roughly $24 million in outstanding accounts payable. While he claimed steps were underway to settle debts, court records indicate a rising tide of unresolved legal claims.
Among the plaintiffs are Wurth Electronics ICS of Ohio ($2 million), Auto Metal Craft Inc. of Michigan ($728,000), Webb Wheel Products of Alabama ($329,000), Productivity Team LLC ($599,000), and Human Capital Ventures ($103,000).
Yet even as it navigates litigation and vendor unrest, the company maintains that it is actively working to resolve disputes. “While we cannot comment on specific lawsuits, Bollinger Motors remains committed to resolving our accounts payable with our supplier network,” Chief Revenue Officer Jim Connelly said in a statement on July 30.
The company’s electric Class 4 trucks are built through contract manufacturing with Roush Enterprises of Livonia, Michigan. Although Roush has not taken legal action, Michery said Bollinger recently paid Roush nearly $1 million and remains in good standing with the firm. Roush declined to comment.
Earlier this summer, Bollinger paid founder Robert Bollinger $11 million to settle claims stemming from a loan he issued to the company. The founder had sued, citing concerns over the company’s solvency. That payment, Michery said, was a necessary step to clear the path for reorganization.
Despite a sharp downturn in EV demand, rollback of federal incentives, and tariffs on imported components, Michery remains publicly optimistic about the company’s future. He cited a $150 million equity line and $80 million in committed capital as key financial lifelines.
“The company has survived when nobody else has,” he said. “If you look at who’s still standing, we’re the last man standing. You’ve got to kill me to stop me.”
Bollinger’s stock, which traded around 6 cents per share before the split, is now subject to scrutiny as it adjusts to the post-split trading environment. The new CUSIP number following the adjustment is 62526P885.
As the company consolidates operations from California to Michigan and repositions itself under a new name and ticker, the stakes are higher than ever for the once-hyped EV manufacturer seeking to regain credibility, solvency, and market relevance.