The Netherlands Public Prosecution Service has abandoned its criminal investigation into e-cargo bike manufacturer Babboe after it was alleged the firm withheld details about issues with its frames. Administrative action conducted by another public body continues however and law firm Birkway is also set to sue the brand on behalf of 14,000 people.
In February, the Dutch Food and Consumer Product Safety Authority (NVWA) instructed Babboe to cease trading after several employees claimed that management were aware that frames were breaking and refused to admit it to customers.
A month later, the brand launched a recall of its City, City E, Mini and Mini E models, explaining that the safety of the bikes could not be guaranteed.
The NVWA said Babboe had not provided enough information to prove that some of its models were safe to use, and that it had received hundreds of reports of broken frames and failed to report them even though this is a legal requirement.
A criminal investigation was subsequently launched over accusations of a cover-up. One allegation was that employees had hidden damaged frames from NVWA inspectors when they visited its premises.
That investigation has now been halted. Bike-eu.com reports that the Public Prosecution Service concluded criminal prosecution would not be more effective than administrative action carried out by the NVWA.
The NVWA can enforce recalls and investigate other potential safety issues.
A spokesperson for parent company Accell Group said: "Our priority remains to help all Babboe owners as quickly as possible so that everyone can safely get back on the road."
Parallel to this, Birkway has reportedly "taken the plunge" to launch legal proceedings against Babboe and Accell Group, having been in contact 14,000 affected owners.
NL Times reports that Babboe offered to exchange bikes, but Birkway feels the offer was "insufficient" due to the wait times involved and the fact that many owners are seeking compensation so that they can opt for a different brand other than Babboe.