Nikola anticipates $125 million civil penalty settlement with SEC

Nikola Tre BEV.jpg
Posted at 8:42 AM, Nov 05, 2021
and last updated 2021-11-05 11:42:58-04

Nikola Corp., the Phoenix-based zero-emissions vehicle startup, said on Thursday that it expects to pay up to $125 million to resolve the ongoing investigation by the Securities and Exchange Commission into claims that the company allegedly misled investors.

The resolution agreement is tentative and subject to a vote by the commissioners at the SEC, but Nikola anticipates making payments on the $125 million civil penalty as installments over time.

News of the potential settlement was released alongside Nikola’s third-quarter earnings results, and shares jumped as a result, gaining as much as 22% during trading hours. Shares closed at $15.41 on Thursday, a $2.70 (21.24%) gain on the day. Follow the stock here.

Nikola’s legal troubles stem from the September 2020 report by Hindenburg Research, a short seller, that accused the company of being an “intricate fraud” scheme to deceive investors. Nikola founder Trevor Milton resigned from the company less than two weeks after the report published.

Read more of this story from the Business Journal.