A senior executive at Apple Inc., who was working on the company's electric car project, has been sued by the Securities and Exchange Commission (SEC) for allegedly violating securities rules during his time as CEO of Canoo, an electric vehicle startup. Ulrich Kranz, the former CEO of Canoo, and Paul Balciunas, the former CFO, are facing allegations of providing unreasonable revenue projections and misrepresenting payment details. The SEC is seeking to impose fines on both individuals and bar them from serving as officers at public companies.
Kranz, who joined Apple in 2021 after leading BMW AG's electric car division, was responsible for hardware design for the Apple car and reported to project head Kevin Lynch. However, Apple has declined to comment on the situation, while Kranz has not made an immediate statement in response to the SEC's lawsuit. Balciunas currently works at Apex.AI Inc., a company that develops software for autonomous vehicles, and is yet to publicly address the case.
The SEC investigation into Canoo began early in 2021, focusing on various aspects of the company's operations, such as its business model, revenues, customer agreements, and the departure of key officers. This lawsuit against Kranz and Balciunas comes after Canoo agreed in March to pay $1.5 million as part of a settlement with the SEC related to its merger with a special purpose acquisition company.
It remains to be seen how the legal proceedings will unfold and what impact it may have on Apple's electric car project. The company has been making significant investments in autonomous and electric vehicle technology, and the hiring of high-profile individuals like Kranz reflects its ambitions in the automotive industry. However, this lawsuit adds a layer of complexity and potential risk to Apple's plans as it navigates through the highly competitive electric car market.