Electric truck maker Nikola stated Tuesday it’ll pay $125 million to finish a authorized dispute with securities regulators over costs the corporate made deceptive claims and defrauded traders.
The Securities and Exchange Commission (SEC) stated the corporate misled traders “about its merchandise, technical developments and business prospects.”
“Nikola Corporation is accountable each for Milton’s allegedly deceptive statements and for different alleged deceptions, all of which falsely portrayed the true state of the corporate’s enterprise and expertise,” stated Gurbir S. Grewal, head of the SEC’s Enforcement Division.
The actions included “misrepresenting or omitting materials details” about refueling time, the standing of its hydrogen station and the price and sources of electrical energy, the SEC stated.
“This misconduct—and the hurt it inflicted on retail traders—deserves the sturdy treatments at this time’s settlement offers,” Grewal stated.
The firm, which neither admitted nor denied any wrongdoing, stated it’ll pay the fine in 5 semi-annual installments over a interval of two years, with the primary by the top of this 12 months.
“We are happy to deliver this chapter to an in depth as the corporate has now resolved all authorities investigations,” Nikola stated in an announcement, which stated it’s in search of reimbursement from Milton.
US authorities in July charged Milton for “overtly and repeatedly” making false claims concerning the prospects for the corporate’s hydrogen- and battery-electric autos.
Milton, who’s combating the costs, resigned from the corporate in September 2020 amid the fraud allegations.
He launched Nikola in 2015 and the automaker went public in June 2020 via a the increasingly-popular path of merging with a special-purpose acquisition firm (SPAC).
The company gained traction after signing a partnership with General Motors, however the deal dissolved rapidly in late 2020 after the allegations arose.
In its quarterly earnings report in November, Nikola ready his traders for the fine, setting apart $125 million.
© 2021 AFP
Electric truck maker Nikola to pay $125 mn US fine for fraud (2021, December 21)
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