A “House of Cards” and a Global Fight Over Liability
With Arrival declared bankrupt in May 2024, the proposed $13.3 million settlement becomes even more critical. The investors estimate that the maximum class damages hit $1.1 billion, meaning this recovery represents just 0.10–0.12% of best-case losses. Still, they argue it’s fair in light of Arrival’s collapse and dwindling insurance assets.
Beyond the federal court, similar claims are pending in New York state court and Delaware Chancery Court—and the current deal would also settle those. However, attorneys in the Delaware case may object, citing lack of participation in mediation and potential self-interest.
“The current deal could result in ‘global peace’ regardless of Delaware plaintiffs’ and their counsel’s desire to preserve their action for self-serving reasons,” plaintiffs wrote.
Lawyers, Fees, and Fallout
The plaintiffs’ attorneys plan to seek one-third of the settlement fund in fees and up to $325,000 in litigation cost reimbursements. They may also allocate fees to state court counsel and request up to $30,000 in incentive awards for the lead plaintiffs.
Arrival SA is represented by Skadden Arps Slate Meagher & Flom LLP, with Susan L. Saltzstein, Robert A. Fumerton, and Shaud G. Tavakoli leading the defense. Plaintiffs are represented by Laurence Rosen and Sara Fuks of The Rosen Law Firm.
With Arrival’s bankruptcy proceedings ongoing in Luxembourg, the final resolution may rest on whether Judge Peggy Kuo gives this proposed settlement the green light—and whether rival plaintiffs continue to spark conflict in the background.
