Bankrupt Lion Electric is facing another legal investigating over potentially false and/or misleading statements to pertinent investors regarding its battery-electric school buses. The company also previously manufactured battery-electric, zero-emission Class 6 and 8 semi tractors.
[Related: Lion Electric files for bankruptcy]
Bragel Eagel & Squire, P.C., a New York-based law firm specializing in shareholder rights law, has announced an investigation into the Quebec-based manufacturer due to concerns it "violated federal securities laws and/or engaged in other unlawful business practices."
This investigation is separate from the one begun a few weeks ago by fellow New York law firm Bronstein, Gewirtz, & Grossman, LLC., which also suspects Lion committed federal securities fraud.
[Related: NY law firm investigating Lion Electric over possible federal law violations]
Both legal investigations are based on the same article, dated February 17, 2025, from Maine newspaper Kennebec Journal titled "EPA visits Winthrop schools as part of electric bus investigation."
According to the article, “Federal agents visited Winthrop schools in late January as part of an investigation into Lion Electric Co.’s electric buses, interim Superintendent Becky Foley told the school board earlier this month.” The superintendent told the school board that, “I met with an EPA special agent last week to see if there was any fraud committed by Lion. I think whatever resolution may occur will take some time, and I will keep the board posted.”
A history of issues
Lion's EV school buses initially caught the federal agency's attention due to a series of mechanical and/or electric failures, such as the loss of power steering and other safety concerns that began not longer after entering service in late 2023.
To date, Lion has reportedly yet to repair any or most of these buses, originally claiming it lacked the manpower to do so following a series of layoffs.
[Related: Lion Electric suspends Illinois plant production, lays off hundreds]
Under the Biden administration, 30 Maine school districts purchased 72 electric buses through the EPA's electric vehicle incentive program. Nine of the districts bought Lion's zero-emission buses to replace aging diesel-powered buses. A former Lion technician reportedly warned federal and state officials about safety issues, claiming the buses are "more like a science project than a validated, road-legal vehicle."
Josh Wheeler, transportation director for Winthrop Public School, told Clean Trucking that "It's been a long road with our four Lion buses over the past year and a half. The story is long and complicated." He didn't elaborate further.
A perhaps even more troubling incident involving a Lion bus occurred last January in Ontario, Canada. While transporting students to school, the driver was forced to pull to the side of the road following an unknown issue. The bus soon caught on fire but the students were safely evacuated beforehand.
[Related: Lion Electric EV school bus catches fire on way to school]
The ongoing litigation against Lion Electric will very likely require more time, especially since it involves potential financial compensation. Earlier this month, a bankruptcy court-appointed monitor granted an extension for companies potentially interested in purchasing or liquidating Lion's assets.
Lion also received a creditor protection extension until early April.
