Lordstown Motors settles Karma trade secret litigation for $40M; seeks court approval by Aug 28

NU RIDE INC.

Settlement includes $40M payment ($5M as royalty) for a worldwide, non-exclusive, perpetual IP license from Karma.
Mutual releases and dismissal of Karma Action with prejudice upon final bankruptcy court approval.
Avoids trial scheduled for Sept 12, 2023, which could have hindered asset sales in Chapter 11.
Settlement contingent on Bankruptcy Court approval by August 28, 2023; motion filed Aug 15.
Removes a major litigation risk and uncertainty for Lordstown's Chapter 11 process.

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