Truck maker wants to prosecute former owner: Stock Exchange supervisory authority condemns full sentence to Nikola

Tuesday, December 21, 2021

Truck farmer wants to prosecute former owner
Stock Exchange Supervisory Authority condemns full sentence to Nikola

The allegations are serious. According to officials, Nikola’s former boss has allegedly given misleading information about the company’s capabilities and business status. The company does not admit the allegations – but does impose a three-digit million fine.

US electric truck maker Nikola has fined $125 million for fraud. The US Securities and Exchange Commission said the company “misled investors about its products, technological advancements and commercial prospects”. The company set up in 2015, which neither admitted nor denied the allegations, announced that it would pay the fine in five instalments.

Background There are allegations against the company’s founder and former Nikola boss Trevor Milton. In July, he was accused of duping investors with several false and misleading claims to increase demand for the company’s shares.

“Nicola is responsible for both Milton’s alleged misleading statements and alleged misrepresentation, which misrepresented the true state of the company’s business and technology,” said SEC official Gurbir Grewal. This wrongdoing and loss to investors would justify higher fines.

Nikola develops electric and hydrogen powered trucks. According to the SEC, the false allegations include, among other things, the risks of hydrogen production capacity, charging times, vehicle orders, financial prospects and an interim partnership with auto giant General Motors.

“We are pleased to close this chapter,” Nicola said in a statement. The company also announced plans to recover fines from Milton. Nikola’s founder resigned from top management in September 2020 amid allegations of fraud.