Guerrero and Xie argue that Faraday Future signed these sales agreements with its earliest customers without pre-delivery car inspections, and that Jia's subordinate rejected objections. They claim the sales crew was forced to submit DMV documentation "without the required insurance and cash payments."
They also allege that Jia's team was sending "non-road approved software" to early customer cars and not properly documenting or disclosing the software's release notes to the NHTSA, violating the Transportation Recall Enhancement, Accountability, and Documentation Act.
They further allege that Faraday Future has been repairing early customer vehicles without sufficient documentation or work authorization, which might jeopardize its California Bureau of Automotive Repair license. "When [Defendant Mr. Jia] and his trusted circle inquired about regulatory requirements, it was done so with the clear intention to 'creatively' circumvent the rules," the complaints say.
In her case, Xie claims Jia and Yang were personally involved in her sacking "in retaliation for her protected whistleblowing" two days after the letter was sent. The complaint says Xie tried to sue the firm for arbitration on December 22. The complaint argues that Faraday Future missed the 30-day arbitration fee deadline, allowing her to sue in Superior Court.
Guerrero claims Faraday Future dismissed him on January 18 for speaking out. He also filed an arbitration claim against Faraday Future, and when the fees were not paid, he may sue in Superior Court.
Jia's control over Faraday Future has always been contentious. As previously revealed, Jia surreptitiously oversaw the company in its early years despite listing another CEO. In 2019, he became CEO, but he hired a former BMW executive to attract investors. After combining with a special purpose acquisition company, the company became public in 2021.
Jia was penalized after a late 2021 internal review. That probe investigated a short-seller's claims that Faraday Future had exaggerated vehicle preorders and failed to disclose the founder's money movements. Jia associates led a boardroom coup in 2022 while under SEC and DOJ investigation.
Jia is not CEO, but Guerrero and Xie say in their complaints that he "heads a shadow organization" that controls the corporation. He allegedly meets with key lieutenants at one of his Pacific coast properties virtually every week. "All major operational decisions within key functions of the businesses, including human resources, budget allocations, vehicle release, and the financial services, are directed and approved by Jia," the claims say.
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