Nikola to pay USD125m as part of SEC resolution
By Bradley Osborne - 3rd January 2022
USA – Nikola Corporation, a designer of electric truck concepts based in Phoenix, Arizona, has reached a settlement with the U.S. Securities and Exchange Commission (SEC), agreeing to pay a civil penalty of USD125m, thus concluding the U.S. government’s investigation into the company following fraud allegations against its founder.
The sum is to be paid in five instalments over two years, with the first having already been paid at the end of 2021. Nikola stressed that, by agreeing to the terms of the resolution, it was neither admitting nor denying the SEC’s findings regarding potential business malpractice. The company continues to seek reimbursement from its founder, Trevor Milton, who resigned following fraud allegations against him. On 29 July 2021, a U.S. federal grand jury indicted Milton on three counts of criminal fraud and two counts of securities fraud, to which Milton pleaded not guilty.
