TNI || New Delhi || 8th Nov 2021
Nikola Corporation, in a statement, has said that it has reserved $125 million to fund a potential settlement with the U.S. Securities and Exchange Commission due to a charge by a regulator against the truck makers founder of misleading the investors.
The SEC had earlier said that it had charged Trevor Milton, the then founder of Nikola, for consistently sharing false and misleading information to the investors.
The commission alleged that Trevor took to his social media platform to give false information about the electric vehicle makers capabilities and technology that led to him reaping millions of dollars.
Nikola’s CEO, in a recent statement, said that they are looking forward to resolving the issues related to the founder, thereby bringing the chapter to a close.
There has been no comment on this issue by either Milton or any of his spokesperson as yet.
Nikola has been working closely with the commission for a resolution, which when approved, will include a fine of $125 million in a civil penalty that will be paid over a while in instalments.
The company also seeks to get reimbursement from Milton for the damages incurred and the cost in connection with the regulatory and government investigations.