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Why No Law Suit...............

Discussion in 'General Elio Discussion' started by Capes, Jul 10, 2020.

  1. Samuel Gompers

    Samuel Gompers Elio Addict

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    1) I believe that there should be a lawsuit to require Elio to issue full refunds of all of the refundable deposits. Elio did not put the refundable money into an escrow account until they were forced to do so, but it appears that the money was eventually escrowed. Any reservationist who still wanted Elio to keep the money should be given the option to refuse the refund. Any uncashed refunds would be escheated.

    2) There is no lawsuit to recover non-refundable reservations because there is nothing left to recover.

    3) The only lawsuit that would make sense would be to go after the Elio principals personally based on invalid or fraudulent contracts. The non-refundable reservation contract was invalid because of the lack of consideration as noted above. The production line never existed, so a spot in that line was and is meaningless. Elio never offered consideration because they specifically exempted themselves from any obligation, ie invalidating any consideration. The question of the contract being fraudulent would be harder to prove in court, but there is quite a lot of evidence that the Elio principles knew, or should have known, that their advertising was false, and that their claims of possible production were impossible to meet. Even with lack of consideration being easy to prove, and stipulating that fraud existed, it is uncertain that sufficient assets remain personally (excepting for Lichtner) to satisfy the claims.

    TLDR > It's unlikely that the Elio principles will be held to account in the U.S. court system for the losses incurred by those who fell for their sales pitches.
     
    Elio Amazed likes this.
  2. W. WIllie

    W. WIllie Elio Addict

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    At one time there was a petition for a class action lawsuit stirring about but more signatures were needed. I think it was in Az.......IIRR.
     
  3. tom

    tom Elio Fan

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  4. tom

    tom Elio Fan

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    I assume im fucked. 2 want ins. 1 all in and 2500.00 in stock.
    Thinking of hiring a hit man
     
  5. Josh

    Josh Elio Fan

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    Uhm........yes. As has already been pointed out numerous times, there is nothing left to recover. The eleo was always a fantasy of pe's. As a registered professional engineer it was obvious to me that the while thing was a pipe dream financially enabled by folks that wanted to believe. For a start-up company to successfully design, build and bring to market a new vehicle with acceptable performance, unmatched fuel economy and at a unbelievably low, low price point to boot. Well the outcome was never in question.
     
  6. Elio Amazed

    Elio Amazed Elio Addict

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    Need to modify your post a bit. Not so much because of the language but because of the other content. Even joking like that will get you red flagged these days and getting red flagged can get your firearms confiscated in the middle of the night with no warning.. The NSA and others record and process literally everything and have a system to catch key words and phrases in all internet posts.
     
  7. RSchneider

    RSchneider Elio Addict

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    In addition to that, people just didn't question his background. They wanted to believe he had all of this experience in the automotive industry when he had very little. His engineering company dabbled in the car industry but mostly was for solar energy. Even at that, it failed. His inexperience showed when he started making claims he couldn't back up. Then when people that had lots of automotive experience pointed out the obvious flaws early on, he kept grinding away and only toward the end, he tried to make major changes (i.e. going from a space frame to unibody) which literally drained a bunch of money at the wrong time. If you look at the finances, 2016 was the year they spent the most on R&D. Coincidentally, that was exactly the same time they did a complete redesign with a new chassis. Then the engine was more publicized and people wanted to believe he was doing making the right choice. When no experts in the field agreed with him. Yet again, lots of money spent on the wrong thing.

    Then his business experience showed too. He made too many bad deals that just drained the finances of the company. The plant cost him dearly. His 1500 employee work deal cost him dearly. He never had a base of operations or a decent employee number. Instead he was farming it all out and just renting facilities just to make it look like they had some sort of engineering department. To top it off he spent way too much money on lobbying for helmet laws to change. Then the amount they spent on marketing was way too high especially when you looked at the outfit they had. Most of the time is was a small box trailer and a pickup with setups in places like shopping malls. Someone got rich towing that car all over the country because the marketing budget was massive for what was presented.

    Now Paul has created a toxic atmosphere around him. Dropping off the face of the earth for the last two years is not a good way for your current SIL holders and future customers to keep believing in you. So, he has killed the business and is now just waiting for the clock to run out. It will become a case that will be studied in school as what not to do in business.
     
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  8. 3wheelin

    3wheelin Elio Addict

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    In the end his name will forever be associated with Dale Shiffts! History repeated itself in this case because people didn't learn from the Dale 3wheeler of the 70's. If it smells too good to be true...it usually is.
     
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  9. Watashiwah

    Watashiwah Elio Addict

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    On paper, at least, it looked like Hari had the business ‘chops’ and education and ATVM experience. Paul’s CV, which apparently surfaced later, was almost humorously pathetic.

    I still can’t fathom just what Hari brought to the party except an open hand. Where was he ?
     
  10. Samalross

    Samalross Elio Addict

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    I think Iyer showed Elio that the money to be made is is by not building a car.
     
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