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Loveland company Workhorse admits it's under federal investigation

a drone flies in front of a while Workhorse van.
Ann Thompson
/
WVXU
Workhorse makes electric delivery vehicles that work with drones. It has close ties to Lordstown Motors which plans to make electric pick-up trucks on a large scale in the vacant former GM plant.

Workhorse, a Loveland company that makes electric delivery vehicles, admitted in an SEC filing Monday that it’s under federal investigation by both the Justice Department and the Securities and Exchange Commission.

In the filing, Workhorse says it hasn’t received a subpoena but is cooperating. The SEC is requesting information related to events and trading in its securities leading up to “the announcement of the award of a contract by the U.S. Postal Service for the manufacture of a postal service vehicle fleet and (b) recognition of revenue, if any, related to purchases of vehicles by certain of the Company’s customers.”

The Justice Department told Workhorse it has a related open investigation.

Workhorse is not without problems. In September the company had to recall 41 C-1000 vehicles and suspend delivery for others to bring them into full compliance with federal safety standards.

The former CEO of Workhorse, Steve Burns, left the company to start Lordstown Motors. He left Lordstown and is under investigation for allegedly lying about pre-orders of electric pick-up trucks at the former GM plant.