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Nikola Secures $ 125 Million for Settlement with SEC – TechCrunch

Nikola, the developer of the electric truck, will pay a civil penalty of $ 125 million in consultation with the US Securities and Exchange Commission. This is part of an ongoing regulatory investigation into whether the company misleads investors.

Nicola paid the settlement in installments and allocated funds in anticipation of the resolution, the company said in its third-quarter earnings results.

Based on the progress of discussions with the SEC in October 2021, Nicola “reserved a loss of $ 125 million as the best estimate of contingencies of accrued liabilities as of September 30, 2021.” Said the financial statements.

Meanwhile, Nikola’s embarrassed founder, Trevor Milton, was busy defending his own criminal defense. He faces two separate accusations. One is the SEC’s accusation on suspicion of violating the Securities and Exchange Law, and the other is the criminal accusation from the US law firm. Two counts for securities fraud and one count for transfer fraud ..

The company continues to pay his attorney’s fees, which cost about $ 12.6 million in the first nine months of this year. Nicola said he would seek reimbursement from Milton “for costs and damages associated with government and regulatory investigations.” As of the end of September, he owned about 16% of Nicola’s stock.

It would be a conservative statement to say that the past fiscal year was a struggle for the company. Nicola flew high last September. $ 2 Billion Strategic Partnership General Motors has acquired an 11% stake in the then-startup and production conditions of Nikola’s fuel cell pickups by the automaker (the pickups were subsequently crushed). But only a month later, GM withdrew from trading After the SEC began its investigation after receiving a report from short-selling Hindenburg Research

Nicola told investors that the resolution to pay the SEC $ 125 million must first be approved by regulators.

https://techcrunch.com/2021/11/04/nikola-sets-aside-125-million-to-settle-with-sec/ Nikola Secures $ 125 Million for Settlement with SEC – TechCrunch

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