Electric Truck Maker Nikola To Pay $125 Mn US Fine For Fraud

Electric truck maker Nikola mentioned Tuesday it’ll pay $125 million to finish a authorized dispute with securities regulators over fees the corporate made deceptive claims and defrauded traders

New York, (APP – UrduPoint / Pakistan Point News – twenty first Dec, 2021 ) :Electric truck maker Nikola mentioned Tuesday it’ll pay $125 million to finish a authorized dispute with securities regulators over fees the corporate made deceptive claims and defrauded traders.

The Securities and Exchange Commission (SEC) mentioned the corporate misled traders “about its products, technical advancements and commercial prospects.” The settlement follows authorized motion in opposition to firm founder and former CEO Trevor Milton, who tried to inflate the corporate’s inventory value, the SEC mentioned.

“Nikola Corporation is responsible both for Milton’s allegedly misleading statements and for other alleged deceptions, all of which falsely portrayed the true state of the company’s business and technology,” mentioned Gurbir S. Grewal, head of the SEC’s Enforcement Division.

The actions included “misrepresenting or omitting material facts” about refueling time, the standing of its hydrogen station and the associated fee and sources of electrical energy, the SEC mentioned.

“This misconduct — and the harm it inflicted on retail investors — merits the strong remedies today’s settlement provides,” Grewal mentioned.

The firm, which neither admitted nor denied any wrongdoing, mentioned it’ll pay the high-quality in 5 semi-annual installments over a interval of two years, with the primary by the top of this yr.

“We are pleased to bring this chapter to a close as the company has now resolved all government investigations,” Nikola mentioned in an announcement, which mentioned it’s in search of reimbursement from Milton.

US authorities in July charged Milton for “brazenly and repeatedly” making false claims in regards to the prospects for the corporate’s hydrogen- and battery-electric autos.

Milton, who’s combating the fees, 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 firm gained traction after signing a partnership with General Motors, however the deal dissolved shortly in late 2020 after the allegations arose.

In its quarterly earnings report in November, Nikola ready his traders for the high-quality, setting apart $125 million.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button