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Skully Sued by Flextronics

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Posted on 28 Sep 2016

Skully Helmet

The start-up company who developed the futuristic high tech Skully Helmet are now being sued by their business partner Flextronics for unpaid bills. The Skully AR-1 was billed as the first motorcycle helmet with built-in 360 degree awareness, blind spot camera and heads up display.

Skully's Indiegogo Campaign Page Which Gained Them $2.4 Million In Funds

Skully's Indiegogo Campaign Page Which Gained Them $2.4 Million In Funds

Skully raised a staggering $2.4 Million from just 1940 investors on crowd funding site Indiegogo. The funds had been promised to their first batch of paying pre-order customers, but the helmet never reached viable production. Instead, Marcus and Mitch Weller (the brothers who were joint CEO of Skully), were widely reputed to have wasted the money on strippers, holidays, limousines, and even two Dodge Vipers and an Audi R8 for personal use. This resulted in the first lawsuit against them, leading the pair to file for bankruptcy.

Skully's legal troubles have now escalated, as their once business partner Flextronics, initially involved with the production of the helmets, are now suing them for over $2 Million. The breakdown in claimed costs tallies to and eye-watering $505,703 in unpaid bills, $514,409 for other expenses, plus an additional $1.5 million for material costs required to make the Skully helmet.

Flextronics legal team stated in their complaint document:

“Skully has failed and refused, and continues to fail and refuse, to make full and complete payment to Flextronics to satisfy the debt that Skully owes to Flextronics".

With a long list of creditors, sadly for Skully investors it is highly unlikely that they will ever see their money returned. The ongoing Skully saga is a lesson in crowd sourcing buyer beware.