Apple Car Executive Faces SEC Lawsuit Over Alleged SPAC Violations
According to an exclusive report by Bloomberg, the Securities and Exchange Commission (SEC) has filed a lawsuit against a senior Apple executive for allegedly breaking securities rules at his former company.
The executive, Ulrich Kranz, was involved in violating securities rules during his tenure at the electric-vehicle startup, Canoo, alleges the lawsuit filed in a federal court in Los Angeles.
The lawsuit also accuses Paul Balciunas, former Chief Financial Officer, of providing unreasonable revenue projections and misstating compensation information. Both Kranz and Balciunas are no longer employed at Canoo.
The SEC is seeking to impose fines on both Kranz and Balciunas, in addition to barring them from serving as officers at public companies.
This legal action comes after Canoo agreed to pay $1.5 million as part of a settlement in an SEC investigation related to its merger with a special purpose acquisition company in 2020.
An SEC probe was launched into Canoo in early 2021, focusing on various aspects of the company’s operations, business model, revenue strategy, customer agreements, earnings, and the departure of certain officers.
In 2021, Apple hired Ulrich Kranz, who previously led BMW AG’s electric-car business, to take part in their own electric vehicle efforts. In his role at Apple, Kranz has been responsible for overseeing hardware design for the car and reports to project head Kevin Lynch.
The lawsuit is titled SEC v. Ulrich Kranz, Paul Balciunas, 23-cv-06332, and is being heard in the US District Court for the Central District of California.