National investor fraud law firm KlaymanToskes is investigating Nikola (NASDAQ: NKLA) in light of the company’s $125M settlement with the Securities & Exchange Commission (“SEC”) regarding fraud charges resulting in Nikola investment losses.
What is Nikola?
Nikola is a publicly traded zero emissions transportation system provider that designs and manufactures battery electric vehicles (“BEV”), hydrogen fuel cell electric vehicles (“FCEV”), and hydrogen station infrastructure. Nikola was created through a special purpose acquisition corporation in 2020.
According to its SEC filings, Nikola operates in two business units: Truck and Energy.
Nikola Defrauded Investors by Misleading Them About Products, Technology, and Prospects
According to the SEC’s Order, before Nikola had produced a single commercial product, former Executive Chairman Trevor Milton conducted a media blitz aimed at inflating and maintaining Nikola’s stock price. Milton’s statements in tweets and media appearances falsely gave investors the impression that Nikola had reached certain product and technological milestones.
Moreover, the SEC’s Order found that Milton misled investors about Nikola’s products, technology and prospects, including its:
The SEC Order also found that Nikola misled investors by misrepresenting or omitting material facts about the refueling time of its prototype vehicles, the status of its headquarters’ hydrogen station, the anticipated cost and sources of electricity for its planned hydrogen production, and the economic risks and benefits associated with its contemplated partnership with a leading auto manufacturer.
Nikola Pays $125M Penalty
Without admitting or denying the Commission’s findings, among other things, Nikola agreed to cease and desist from future violations and pay a $125 million penalty.
KlaymanToskes Nikola Securities Investigation
Former and current customers of full-service brokerage firms who were recommended to invest in Nikola (NASDAQ: NKLA) with investment losses exceeding $100,000, and who have information relating to sales practices and financial misconduct of financial advisors in connection with the sale of Nikola, are encouraged to contact Lawrence L. Klayman, Esq. at (561) 542-5131, and download our Special Investor Report.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. KlaymanToskes has recovered more than $225 million for investors in FINRA arbitrations. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
Lawrence L. Klayman, Esq.