NEW YORK, July 27 Reuters Bankrupt Lordstown Motors must face trial over a rival carmaker39;s claim that Lordstown vehicles include stolen technology, a U.S. judge ruled Thursday, dealing a blow to the company39;s hopes for a quick bankruptcy sale.

The automaker, named after the Ohio town where it is based, filed for bankruptcy in June and had asked U.S. Bankruptcy Judge Mary Walrath in Wilmington, Delaware, to approve bidding procedures that would allow the company to sell its assets by September.

Walrath instead said a sale should not be expedited while a California court is weighing a lawsuit by a rival carmaker that raises questions about some of the assets Lordstown seeks to sell.

Californiabased Karma Automotive sued Lordstown in 2020 for allegedly poaching its employees and stealing technology used in vehicle infotainment systems. That case had been scheduled for trial in September before being placed on hold by Lordstown39;s bankruptcy.

The critical issue in this case is whether the debtors own the property that they want to sell, Walrath said at a court hearing. The California court … should decide those issues.

Karma said it was pleased with the ruling allowing it to proceed to trial. The company has overwhelming evidence that Lordstown39;s Endurance electric pickup truck was developed using Karma39;s proprietary technology, a Karma spokesperson said.

Lordstown did not respond to a request for comment.

Walrath said Lordstown was not at risk of running…