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According to foreign media reports, Faraday Future Faraday Future was sued by Liu Hong, its former global general legal adviser, for $106 million in compensation. This is undoubtedly a new problem for the future of Faraday, which has not yet achieved mass production of new cars.

On Jan. 3, Liu Hong filed a complaint with the Federal District Court for the Southern District of New York in Manhattan, claiming that Faraday overestimated his prospects with fraudulent information and poached him from the law firm Mayer Brown.

At that time, Faraday executives disclosed to Liu Hong that the company was conducting a financing of US $2 billion and promised Liu Hong US $6 million in cash and 20 million shares in Faraday's subsidiary Smart King (worth US $100m), along with interest and related fees.

On August 1, 2018, Faraday announced that Hong Liu, an expert in international legal, financial and regulatory affairs and a former global equity partner of Meiyabo International Law firm, had joined and served as the global chief executive officer, global executive vice president and global general counsel of FF.

However, after Faraday parted ways with its investor Evergrande at the end of 2018, it failed to get an investment of $2 billion, only about $800m. Liu Hong said that when Evergrande did not invest more money in Faraday, it already showed that Faraday's financial outlook had become worse.

In February 2019, Liu Hong was dismissed by Faraday. It means that Liu Hong left after only half a year in the company, and did not get the promised income at the beginning of the job. Therefore, Liu Hong decided to sue Faraday.

In his pleadings, Liu Hong listed six reasons for litigation, including breach of contract, violation of Section 10 (b) of the Securities and Exchange Act of the United States and the Securities and Exchange Commission Act 10b-5, fraud induced by false information, unlawful dismissal, false statements that intentionally caused mental loss to litigants and caused negligence.

So far, Faraday Future has not made any response to this incident.

Just a few days ago, Faraday's new chief executive, Carsten Breitfeld, came to China for an interview in which he revealed that he would look for a partner at home to start a domestic plan to mass-produce FF 91.

In addition, Bi Fukang also raised the question of financing, saying that the company plans to raise a total of about $850 million and expects to complete the next round of financing in the first quarter of next year. IPO opportunities will be sought 12 to 15 months after financing is completed and the funds are in place. As long as financing is in place, the next step of mass production can be carried out immediately.

However, the financing has not yet been successfully landed and has been sued by the former legal adviser, involving a total amount of US $100 million, which is undoubtedly "even worse" for Faraday. Since Jia Yueting withdrew from the shareholder position, even the former "father of BMW" has not been able to successfully complete financing to achieve mass production, the prospect is worrying.

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