Nikola Corp agrees to pay $125m to settle SEC charges of defrauding investors

WASHINGTON: Nikola Corp has agreed to pay $125 million to settle civil charges that it defrauded investors by misleading them about its products, technical advancements and commercial prospects, the U.S. securities regulator said on Tuesday.

The Securities and Exchange Commission (SEC) accused the electric vehicle maker of violating U.S. securities laws with numerous misleading statements made from March to September 2020 about in-house production capabilities, reservation book and financial outlook.

The settlement follows civil and criminal charges filed in July against Nikola founder Trevor Milton for using social media to repeatedly mislead investors about the company’s technology and capabilities, reaping “tens of millions of dollars” as a result of his misconduct. Milton is battling those charges in court after losing a bid to dismiss or move the case.