Workhorse discloses federal probes related to failed Postal contract bid

Ohio van producer Workhorse Group said on Monday it was being investigated by the U.S. Department of Justice and the U.S. Securities and Exchange Commission related to trading in the company’s securities leading up to the award of a U.S. Postal Service contract.

While Workhorse was orally informed of the Justice Department investigation on Nov. 5, the company had received SEC’s letters in mid-October and earlier this month seeking information related to the issue.

The SEC investigation was first reported by The Wall Street Journal in September.

Workhorse disclosed the investigations in a regulatory filing, adding that it has not received any subpoena or request for documents from the Justice Department.

In June, Workhorse had challenged a decision by the U.S. Postal Service earlier this year to award a multibillion-dollar, 10-year contract to Oshkosh Defense to manufacture a new generation of postal delivery vehicles.

The company is also amid a management restructuring with two of its top executives, including finance chief Steve Schrader, leaving the company in late September.