Fisker Automotive Inc. has entered a deal to terminate a lawsuit against XL Insurance America Inc. related to the loss of over 300 luxury cars with a value of around $33 million that were damaged in Superstorm Sandy, according to a court filing. Last December, Fisker (the plug-in hybrid automaker that’s looking for a buyer) filed a lawsuit against XL Insurance in New York State Supreme Court.
It sought to get reimbursement for losses as a result of the destruction of 338 Fisker Karma extended-range sedans. The complaint stated that these vehicles were positioned at a plant in Port Newark, N.J., where they were unloaded from ocean vessels and were set to be delivered to U.S. retail dealerships.
Headquartered in Anaheim, Calif., Fisker said that it had informed XL Insurance, a unit of Dublin-based XL Group Plc, about the loss on Nov. 13. Coverage was denied by the insurer on Dec. 20. A stipulation of discontinuance filed today indicated that the two sides had agreed to end the lawsuit. No official reason was given. None of the parties had given any comment.