Fisker Automotive Inc has resolved its lawsuit accusing XL Group Plc of denying it insurance coverage over flooding from Superstorm Sandy that destroyed 338 of its Karma plug-in hybrids.
Karmaplug-in hybrids were located at a shipping facility in Port Newark, New Jersey, where they had been unloaded from ocean vessels and were waiting to be delivered to retail dealers in the U.S., according to the complaint.
Fisker said it notified XL Insurance of the loss on Nov. 13 and the insurer denied coverage on Dec. 20. Fisker said the vehicles had been submerged in more than 5 feet of seawater on Oct. 29 while they were awaiting shipment to dealers across the country.
Both companies agreed to end the dispute over the loss of vehicles worth about $33 million.
More than 10,000 vehicles were estimated to have been damaged at the Port Newark facility because of Sandy, including several thousand from Toyota Motor Corp.
Fisker has not made new vehicles since July, in part because of battery supplier A123 Systems Inc’s bankruptcy, and has been seeking new investors after a tough 2012 marked by the delayed launch of the Karma plug-in hybrid.
