A complaint filed in a Los Angeles court earlier this month accuses the electric-car startup Faraday Future of failing to pay $1.8 million to a visual-effects company.
The Mill Group said in its complaint that Faraday hired the company last summer to create a visual presentation “to promote the January 2017 launch of a new electric vehicle developed by Faraday,” according to legal documents published by Jalopnik on Monday.
The complaint said Faraday agreed to make payments totaling $1,855,750 to The Mill Group beginning in September with a final payment due in October. The Mill Group claims it delivered the product to Faraday and accuses Faraday of paying only $20,000 of the agreed-upon amount, according to the complaint.
Faraday Future representatives did not immediately respond to Business Insider’s request for comment on the allegations.
The Mill Group is not the first supplier to claim Faraday has not paid for services rendered. The intensely private startup has been struggling publicly in the face of a cash crunch and executive departures over the past six months.
Business Insider recently talked to eight current and former Faraday executives who described a company in turmoil. One source with knowledge of Faraday's affairs said if the company failed to beef up its pocketbook, "the suppliers would essentially force them into bankruptcy."
