Fisker reportedly drops $33MM lawsuit over Sandy damaged cars

In the wake of Superstorm Sandy hitting the east coast, Fisker Automotive and insurer XL Insurance wound up in a legal battle over 338 Karma models destroyed in the storm. The cars were sitting in Port Newark, New Jersey when the enormous storm struck, washing away $33 million worth of viable automobiles. Fisker sued XL Insurance in New York State Supreme Court after the company denied coverage for the loss.

Both sides reportedly reached an agreement to drop the legal action on Thursday without publicly stating a reason for the truce. In lieu of an actual reason, here's some conjecture: the cars may be worth more to Fisker as an uncompensated loss, as pending legal battles make the beleaguered niche automaker much less attractive to potential investors or suitors.