Canoo Faces Investor Suits Over Post-SPAC Deal Focus Changes

Canoo Inc. failed to tell investors it would no longer focus on its engineering services line or a subscription model for vehicle sales, according to two suits filed in federal court in California.

The electric vehicle company touted its engineering services business and subscription plans in special purpose acquisition company, or SPAC, merger documents just three months before revealing the focus switch, investors told the U.S. District Court for the Central District of California.

Canoo formed in December when Canoo Holdings Ltd. merged with blank check firm Hennessy Capital Acquisition Corp. IV and became a public company.

The company’s share ...