Tevva Motors said it was filing a lawsuit in the US against ElectraMeccanica Vehicles (EMV) after the American company terminated its agreement with the EV maker for alleged “multiple incurable breaches”.

Tevva said the lawsuit, being filed in the court in Arizona and also including EMV chief executive Susan Docherty, sought redress for the “improper and unmerited purported termination” of its arrangement with the US firm.

In a statement, Tevva said its lawsuit exposed “how EMV offered spurious, defamatory allegations in a thinly-veiled attempt to justify its abrupt termination of a binding merger agreement with Tevva – a merger agreement that was the product of thousands of hours of time spent by both parties evaluating and structuring a mutually beneficial business combination”.

Tevva added that it had given EMV until 17 November to reach a solution to the situation: “The lawsuit appropriately seeks extensive remedies, such as $75m in damages, an injunction blocking EMV from entering into an alternative merger agreement, and a protective order preventing EMV from dissipating its cash (which will be needed to pay Tevva’s damages) through dividends, executive compensation, and similar wasteful actions,” the statement said.

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Last month, EMV said the deal to merge with Tevva was off – just two months after announcing its partnership.

EMV claimed Tevva had failed to disclose “material information” but did not go into details.

Tevva said its lawsuit would allow it to seek redress, but it added that its operations and business plans continued regardless: “In light of the breakdown in the relationship with EMV, Tevva has re-engaged with a number of investors and public companies who are seeking attractive, strategic merger partners such as Tevva,” it said.

“Tevva is confident that it will secure both medium and long-term funding that will allow it to complete its business plan and transform the commercial truck industry.”

The company manufactures 7.5-tonne to 19-tonne full-electric and hydrogen-electric trucks.

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