Nikola to pay $125 million SEC penalty over Milton comments

By Matt Robinson | Bloomberg

Nikola Corp. volition wage a $125 cardinal punishment to the U.S. Securities and Exchange Commission implicit allegedly misleading statements its laminitis and erstwhile main enforcement serviceman made to investors astir the electric-vehicle startup.

The erstwhile CEO, Trevor Milton, deceived investors astir the company’s technological advancements, in-house accumulation capabilities and motortruck reservations, according to an SEC connection Tuesday. Nikola settled the SEC’s allegations without admitting oregon denying wrongdoing.

“Nikola Corp. is liable some for Milton’s allegedly misleading statements and for different alleged deceptions, each of which falsely portrayed the existent authorities of the company’s concern and technology,” said Gurbir Grewal, caput of the SEC’s enforcement division. “The misconduct — and the harm it inflicted connected retail investors — merits the beardown remedies today’s colony provides.”

The settlement, which Nikola said past period it was expecting, brings the institution a measurement person to moving past the contention surrounding its founder, who stepped down successful September 2020. Bloomberg archetypal reported successful June of past twelvemonth that Milton had exaggerated the capableness of Nikola’s debut truck, citing radical acquainted with the matter.

Nikola said it was “pleased” with the SEC colony and “the institution has present resolved each authorities investigations.” The institution said it would wage the good successful 5 installments implicit the adjacent 2 years and reiterated its volition to question reimbursement from Milton for the costs and damages successful transportation to the probe and different authorities probes.

Representatives for Milton didn’t instantly respond to requests for comment.

Criminal charges

Milton is presently facing transgression and civilian charges for his statements. He asked a national justice past week to propulsion retired an indictment accusing him of misleading investors, saying his comments were simply promotional code successful enactment of the company.

Nikola is vying for a portion of the budding marketplace for EVs with plans to nutrient some battery-electric and fuel-cell semi trucks. It besides aims to found a hydrogen fueling network. The Phoenix, Arizona-based manufacturer’ banal has dropped beneath $10 a stock aft topping $79 past twelvemonth arsenic a poster kid for SPAC-listed clean-energy upstarts.

Nikola roseate little than 1% to $9.33 astatine 9:41 a.m. successful New York. The banal had tumbled 39% this twelvemonth done Monday, portion the Russell 2000 Index climbed 8.4%.