The SEC said Tuesday that the American startup breached antifraud and disclosure control provisions of federal securities laws.
Nikola Corp. has reached a settlement with the Securities and Exchange Commission that will see the company pay $125 million over charges that it defrauded investors. The SEC said Tuesday that the American startup, which focuses on manufacturing electric and hydrogen-powered trucks, breached antifraud and disclosure control provisions of federal securities laws. «We are pleased to bring this chapter to a close as the company has now resolved all government investigations,» Nikola said in a prepared statement on the settlement. We will continue to execute on our strategy and vision to deliver on our business plan.» In July, the U.S. Attorney’s Office in Manhattan charged Trevor Milton, the founder of Nikola, with two counts of securities and wire fraud. He pleaded not guilty to the charges and was released on $100 million bail. Milton also left his role as chairman of the company in September. Milton misled investors about Nikola’s products, technical advances and financial prospects, the SEC alleged, adding that he also carried out a campaign to boost the company’s stock price before it had ever manufactured a vehicle.
