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Harbinger Accused Canoo of Hiding Assets in Its Bankruptcy Sale. What the Courts Decided

Harbinger accused Canoo’s bankruptcy estate of omitting assets, including some acquired from Arrival. The sale was affirmed on appeal, but the court did not decide whether the alleged omissions were real.
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Harbinger accused Canoo’s bankruptcy estate of omitting assets from sale disclosures, including certain assets Canoo had acquired from former competitor Arrival Automotive UK Ltd. That remains an allegation, not a court finding that Canoo concealed assets. The sale was approved and later affirmed on appeal, but the appeal concerned a different issue: the buyer’s right to consent to settlements of Canoo’s trade-secret lawsuit against Harbinger.

What did Harbinger say Canoo left out?

In a March 28, 2025, limited objection to the Chapter 7 trustee’s sale motion, Harbinger challenged the information provided in the virtual data room and sale schedules. It said the disclosures were incomplete, that some listed assets did not belong to the debtors, and that assets it believed the debtors owned were missing. Harbinger specifically identified certain assets Canoo acquired from Arrival Automotive UK Ltd. The public filing does not provide a complete inventory of those disputed assets or establish their value or ownership. Harbinger’s objection

Harbinger also objected to the sale process, arguing that it favored Anthony Aquila, Canoo’s former chief executive. The proposed buyer, WHS Energy Solutions, Inc., is identified as an Aquila affiliate in the later district court opinion. Harbinger said the offer was accepted without broad marketing or an appraisal, and that the data room did not allow independent valuation of the trade-secret assets. Those statements were Harbinger’s arguments in an adversarial filing, not findings by a judge. TechCrunch reported that Harbinger said it formed its view after considering a bid and accessing the bidder data room; the report said the trustee and Canoo’s counsel had not immediately commented. TechCrunch’s report

In its objection, Harbinger wrote: “A process where only one bidder—an insider—has the ability to identify the assets offered for sale and their value is not a fair process.” That is the company’s characterization of the sale, not a judicial determination.

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What was sold, and who bought it?

Canoo and affiliated debtors filed for Chapter 7 bankruptcy in Delaware on January 17, 2025. On March 4, the trustee asked the bankruptcy court to approve an asset purchase agreement with WHS Energy Solutions. The agreement included the estates’ rights in the California trade-secret case, Canoo Technologies, Inc. v. Harbinger Motors, Inc., Case No. 2:22-cv-09309. Canoo had alleged trade-secret misappropriation; Harbinger disputed those claims. District of Delaware opinion California case record

The agreement assigned WHS a share of any net recovery in the Harbinger litigation and required the trustee and buyer to mutually consent to a settlement. Under the agreement, WHS was entitled to 10% of the net Harbinger recovery after specified litigation fees and costs; the bankruptcy estates were to receive the balance. Harbinger did not object to that 10% share, but it challenged the buyer’s settlement-consent right. District of Delaware opinion Harbinger’s objection

What did the courts decide?

The bankruptcy court approved the sale on April 9, 2025, and it closed on April 11. Harbinger appealed. On March 17, 2026, the U.S. District Court for the District of Delaware affirmed the sale order. Its decision addressed the APA provision requiring mutual consent by the trustee and buyer to settle the Harbinger case—not whether the disputed physical-asset disclosures were complete or whether Canoo improperly withheld assets. District of Delaware opinion

The district court described the trustee’s position that selling the litigation rights monetized them for the estates, while leaving open the possibility of an additional recovery. The opinion said the trustee realized more than $17 million for the estates through the sale, while any further litigation recovery remained uncertain. Judge Maryellen Noreika concluded: “Accordingly, the Bankruptcy Court did not err in approving the APA and entering the Sale Order.” That conclusion affirmed the sale order on the issue before the appeals court; it did not resolve Harbinger’s asset-disclosure allegations. District of Delaware opinion

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What happened to the Harbinger lawsuit?

A public bankruptcy docket tracker reports that on August 18, 2026, the court approved a settlement between the trustee and Harbinger defendants and allowed the settlement agreement to be filed under seal. The tracker does not state the settlement terms or any payment. Its latest listed entry, dated October 2, 2026, concerns the Chapter 7 trustee’s interim compensation application, not public disclosure of the settlement. Bankruptcy docket tracker

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Allegations versus rulings

Issue What the public record establishes
Assets allegedly omitted Harbinger’s objection claimed disclosure gaps and named certain assets acquired from Arrival. The filing does not establish ownership, a complete inventory, or concealment. Harbinger’s objection
Sale process Harbinger argued that the process favored an insider-affiliated buyer and lacked broad marketing or an appraisal. These are allegations in its objection, not court findings. Harbinger’s objection
Sale approval appeal The district court affirmed the sale order in a dispute focused on the buyer’s consent rights over settlement of the Harbinger litigation. It did not decide whether assets were concealed. District of Delaware opinion
Settlement A docket tracker reports court approval and sealed filing in August 2026; public terms are not stated there. Bankruptcy docket tracker

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