Skully Sued by Flextronics for Owed Money

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Things keep getting worse motorcycle helmet startup Skully, as its production partner Flextronics has filed suit for money and materials allegedly owed it.

According to court documents, Flextronics is demanding payment of roughly $2 million dollars – $505,703 in past-due bills, $514,409 in unpaid bills, and another $1.5 million in what Flextronics calls “materials and inventory related to the Skully project.”

This lawsuit is the second legal action taken against Skully since the company laid off its workforce and shut its doors for lack of funding.

In the first lawsuit, a former employee alleges her wrongful termination from the Skully, but also lists a number of instances where the company and its management team wasted company money on frivolous items.

Readers will recall that Skully raised roughly $15 million to develop a motorcycle helmet with an integrated heads-up-display (HUD), a feature that is often mistaken for augmented reality (AR) by the mainstream media, and Skully itself, though had the potential to offer a great deal to motorcyclists.

Unfortunately, Skully was never able to bring its helmet to market, which has left more than a few early adopters without not only a helmet, but also potentially thousands of dollars.

It’s not clear what Flextronics hopes to gain by suing Skully now, though a judgment against the company would push it to the head of line, on any sort of collections process. What Skully has in tangible and intangible assets though is unclear.

It is very likely that a judgment in Flextronic’s favor would eat up any of the remaining value in Skully’s carcass, leaving little for other collectors, including customers, to get from Skully’s bankruptcy.

Source: Silicon Beat via MotoFire

Jensen Beeler

Despite his best efforts, Jensen is called one of the most influential bloggers in the motorcycle industry, and sometimes consults for motorcycle companies, whether they've solicited his expertise or not.