Lordstown Settles Endurance IP Theft Lawsuit for $40 Million

Bankrupt electric-vehicle maker Lordstown Motors Corp. has agreed to pay $40 million to settle a Karma Automotive LLC lawsuit alleging that the company lifted designs and technology to develop its flagship Endurance truck.

The settlement disclosed in bankruptcy court papers Tuesday averts an upcoming trial that threatened to derail Lordstown’s efforts to sell its business in Chapter 11.

The deal is for substantially less than the more than $900 million Karma had been seeking, but it ensures Karma is compensated despite Lordstown’s bankruptcy. Lordstown said that while it still disputes Karma’s allegations, a settlement was necessary to avert a costly ...