Onslaught of potential legal action for Lilium
December 4, 2024
Having placed its two main business (Lilium and Lilium eAircraft) into a self-administered insolvency process as of the end of October, Lilium CEO Klaus Roewe stated he remained optimistic about Lilium’s position. With the help of appointed custodian KPMG, “we at Lilium remain fully focused on re-emerging following restructuring, with fresh investment to support the all-electric Lilium Jet’s path to certification and entry into service,” he commented.
However, a multitude of legal firms are now alleging that Lilium mislead its investors, who suffered financial losses when the company filed for insolvency. These predominately cover a period from 11 June to 3 November, with the Schall Law Firm believing “the company’s public statements were false and materially misleading throughout the class period”.
Allegations of Lilium having made “materially false and/or misleading statements” feature in many of the law firm’s explanations, which also suggest that Lilium may have overstated the progress of its fundraising activities and likelihood or feasibility of obtaining sufficient funding to continue operations. Lilium had been attempting to confirm a total loan worth €100 million (guaranteed in equal parts by the federal government and the government of Bavaria), something it failed to secure in October. Claims that Lilium “failed to sufficiently disclose the insolvency of the company and its subsidiaries” have also been alleged.
The inaugural powering-on of the low voltage electrical and avionics system’s aboard Lilium’s first production aircraft (MSN1) was achieved in October 2024, described by the company as “a significant achievement on the path to flight test and certification”. At the time, Lilium indicated that its second unit in final assembly (MSN2) – the first aircraft it intended to fly with a pilot on board – would take to the skies “in early 2025”. Lilium also stated that it intended type certification and entry into service to happen in 2026.
Lilium has declined to comment on the matter.
