Tuesday, December 21, 2021
Truck farmer wants to prosecute ex-boss
The stock exchange supervisory authority condemns Nikola to a full punishment
The allegations are grave. According to the authorities, the ex-Nikola boss has allegedly made misleading information about the company’s capabilities and the business situation. The company does not admit the allegations – but stutters a three-digit million fine.
The US electric truck builder Nikola pays a fine of $ 125 million for fraud allegations. The company has misled investors about “its products, technical advances and commercial prospects,” said the US Securities and Exchange Commission. The company, founded in 2015, which neither admitted nor denied the allegations, announced that it would pay the fine in five installments.
Background are allegations against the company’s founder and former Nikola boss Trevor Milton. He was charged in July with duping investors with numerous false and misleading claims in order to increase demand for company shares.
“Nikola is responsible for both Milton’s alleged misleading statements and alleged misrepresentations that misrepresented the true state of the company’s business and technology,” said SEC official Gurbir Grewal. This wrongdoing and the damage to investors would justify the high fine.
Nikola develops electric and hydrogen powered trucks. According to the SEC, the false allegations concern, among other things, hydrogen production capabilities, charging times, vehicle orders, financial prospects and the risks of an interim partnership with auto giant General Motors.
“We are happy to close this chapter,” Nikola said in a statement. The company also announced plans to reclaim the fine from Milton. The Nikola founder resigned from the top management in September 2020 amid allegations of fraud.