Nikola to spend $125M to fund settlement with SEC
Electric truck developer Nikola has reportedly set aside $125 million to pay to the US Securities Exchange Commission as a civil penalty.
Based on its discussion with the SEC in October, Nikola “reserved a $125 million loss as its best estimate of the contingency in accrued liabilities as of September 30, 2021,”as per the company’s earnings report.
Furthermore, the company’s founder Trevor Milton, has been engaged in his own criminal defense, facing two separate charges. The first from the SEC for allegedly violating securities law, the second one a criminal indictment from the U.S. Attorney’s Office for two counts of securities fraud and one count of wire fraud. Nikola Corp continues to pay for Milton’s legal fees which reportedly will be reimbursed by Milton “for costs and damages in connection with the government and regulatory investigations.”
The company, prior to the SEC investigation, had announced a $2 billion partnership with General Motors last September. GM later backed out of the deal following the investigation.
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