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Nikola to Pay $125 Million in SEC Settlement

Nikola to Pay 5 Million in SEC Settlement

Nikola is to pay the settlement quantity in 5 installments over the following two years, with the primary coming on the finish of this yr.



Picture:

Andreas Gebert/Bloomberg Information

Nikola Corp.

NKLA 2.59%

has agreed to pay $125 million to the U.S. Securities Change Fee to settle an investigation into allegedly deceptive statements made by its founder and former government chairman.

The fee can be made in 5 installments over the following two years, with the primary coming on the finish of this yr.

Nikola’s shares rose 4% in pre-market buying and selling, to $9.62.

The electrical-truck startup disclosed final month that it was taking a $125 million reserve from its third-quarter revenue because it accounted for the anticipated settlement.

Nikola didn’t admit or deny wrongdoing.

“We’re happy to deliver this chapter to an in depth as the corporate has now resolved all authorities investigations,” Nikola mentioned.

It mentioned it’s nonetheless searching for reimbursement from founder

Trevor Milton

for prices and damages associated to the federal government and regulatory investigations.

Nikola was the excitement of Wall Avenue, attempting to chop a path in electrical trucking. However then federal prosecutors started investigating claims that it misled traders. WSJ explains Nikola’s roller-coaster journey. Picture Graphic: WSJ (Video from 10/15/20)

Write to Kimberly Chin at kimberly.chin@wsj.com

Copyright ©2021 Dow Jones & Firm, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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