Company: REE
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025661
Chunk: 54

Company: REE Automotive Ltd.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 54
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 to dismiss for forum non conveniens and ordering the clerk of the court to close the case. On September 26, 2024, the OSR Group filed a Notice of Appeal to the U. S. Court of Appeals for the Fifth Circuit, appealing the District Judge’s adoption of the Report and dismissal of the case for forum non conveniens. The appeal is currently pending and there is no definitive timetable for a final ruling. This lawsuit, if ultimately successful, would have a material adverse impact on REE’s operating results and consolidated financial position.

If we encounter contractual disputes or dispute of other natures with our suppliers, strategic partners and other third parties, our business, financial condition and results of operations may be adversely affected.

We deal with and enter into contracts with our suppliers, strategic partners and other third parties in our ordinary course of business. If we encounter contractual disputes with our suppliers, strategic partners and other third parties or other claims by such parties, our business, financial condition and results of operations may be adversely affected. The contractual terms between us and our suppliers, business partners or other third parties vary depending on various factors, including our business needs, among others. The terms of such contracts are generally negotiated on a case-by-case basis and are commercially reasonable at the time they are entered into. From time to time, there may be contractual disputes between us and suppliers, strategic partners or other third parties relating to our business.

We may face challenges in enforcing these contracts, particularly in circumstances where there are differing interpretations of applicable law and contract terms. Enforcement of such contract matters can be time-consuming, divert management and employee attention and resources, cause us to incur significant expenses or liability and/or require us to change our

Table of C ontents

business practices. Because of the potential risks, expenses, and uncertainties of litigation, we may, from time to time, settle disputes, even where we believe that we have meritorious claims or defenses. Because litigation is inherently unpredictable, we cannot assure you that the results of any of these actions will not have a material adverse effect on our operations, business, results of operations and/or financial condition.

Any such disputes may not only be costly and time-consuming to solve, but may also harm our reputation, subject us to contractual liabilities or significant settlement amounts, or otherwise adversely affect our business, financial condition and results of operations.

REE is subject to U. S. and foreign anti-corruption and anti-money laundering laws and regulations. As a result, REE may face criminal liability and other serious consequences