The billionaire who funded a now- bankrupt biofuel firm is being sued by the state of Mississippi because the state believes that he, along with others, intentionally misrepresented the biofuel firm’s chances for success to the state and convinced the state to loan the company seventy five million dollars.
The lawsuit alleges that billionaire Vinod Khosla and others knew that KiOR’s technology, which produces crude oil from wood, did not perform nearly as well as they had represented that it did. The lawsuit alleges that KiOR fraudulently stated that sixty seven gallons of bio crude had been produced from each ton of dry wood that was burned in the company’s Texas demonstration plant. The actual bio crude yield at the Texas facility was closer to between thirty and forty gallons of bio crude per ton of dry wood. The Mississippi lawsuit also alleges that Khosla and others knew that the company was not a commercially viable operation, and that it would never be a commercially viable operation, even though they confidently represented it as such. The Mississippi lawsuit against Khosla also alleges that KiOR’s management team engaged in behavior that was aimed at silencing the voices of internal critics who questioned the numbers that the company was providing to the state and to its investors.
Shareholders are also suing the bankrupt company, and a former board member has filed a whistleblower lawsuit. The Securities and Exchange Commission is investigating these claims. In 2013, a class-action lawsuit was filed against KiOR by investors, claiming that the biofuel firm’s potential for economic success had been intentionally misrepresented, which seems nearly identical to the fraudulent misrepresentation that is alleged to have happened in Mississippi.
Barrett Law PLLC: Fighting for the Freedoms of Whistleblowers across the State of Mississippi
When a company is engaging in activities that are against the law, they expect their employees to just go along with it. Employees should not be expected to stand back and let illegal activities take place or participate in illegal activities themselves in order to keep their jobs. Whistleblowers stand up for what is right when they take action to expose what is going on that is wrong. Unfortunately, although the activities of whistleblowers benefit everyone, whistleblowers may be harmed by those who their actions threaten to expose. Fortunately, the state provides protection to individuals who face these types of situations at work and decide to take action to expose the illegal activity. If you are a whistleblower who has suffered from any sort of retaliatory action, the Mississippi Whistleblower Attorneys at Barrett Law PLLC would like to assist you. Our attorneys know that whistleblower lawsuits can be complicated, and we will lead you through the complexities and towards a full recovery for any losses that you experienced because of your lawful actions. Call the dedicated whistleblower attorneys at Barrett Law PLLC today at 1 (800) 707-9577 to schedule your free, initial consultation.