Nikola Corp has conceded to make a payment of $125 million for settlement of civil claims which charged that the firm had misled investors with information linked to its products, technological breakthroughs, and commercial prospects, according to the Securities and Exchange Commission of the United States.
The SEC had charged the electric vehicle producer of breaking securities laws of the country by making various false claims concerning in-house production capability, reservation book, and financial forecasts between March to September of 2020.
The settlement comes after civil and criminal charges were brought in July against Nikola founder Trevor Milton for misrepresenting the firm's technology and capabilities on social media, netting "tens of millions of dollars" as a result of his actions. Milton is fighting the allegations in court after losing a plea to have the case dismissed or moved.
The SEC decision stated that Milton made false representations to inflate share prices before Nikola had created a "single commercial product or had any revenues from truck or hydrogen fuel sales."
Nikola has committed to participate with ongoing litigation and inquiry, according to the SEC. Nikola did not admit or refute the SEC's allegations. The corporation had previously stated in November that it expected to be hit with a large penalty.
The SEC's enforcement director, Gurbir Grewal, said in a statement that Nikola "is responsible both for Milton's allegedly misleading statements and for other alleged deceptions, all of which falsely portrayed the true status of the company's business and technology."
Nikola said in a statement that it will stick to its plan and develop its manufacturing network.
The corporation is suing Milton for "costs and damages incurred in conjunction with government and regulatory inquiries," according to the statement.
Nikola decided to get listed publicly in June 2020 through a special purpose acquisition company (SPAC), a procedure that the Securities and Exchange Commission (SEC) has chastised for requiring less initial scrutiny than the standard initial public offering (IPO).
The SEC's chair announced earlier this month that the agency was considering tightening restrictions on how underwriters, boards of directors, and sponsors of SPACs structure fees, publish projections, and disclose conflicts. find out more
This year's intentions are part of a larger crackdown on the SPAC business. The Securities and Exchange Commission has also ordered senior auditors to improve their accounting standards and initiated a comprehensive enforcement investigation into Wall Street banks involved in the transactions.
(Source:www.fortune.com)
The SEC had charged the electric vehicle producer of breaking securities laws of the country by making various false claims concerning in-house production capability, reservation book, and financial forecasts between March to September of 2020.
The settlement comes after civil and criminal charges were brought in July against Nikola founder Trevor Milton for misrepresenting the firm's technology and capabilities on social media, netting "tens of millions of dollars" as a result of his actions. Milton is fighting the allegations in court after losing a plea to have the case dismissed or moved.
The SEC decision stated that Milton made false representations to inflate share prices before Nikola had created a "single commercial product or had any revenues from truck or hydrogen fuel sales."
Nikola has committed to participate with ongoing litigation and inquiry, according to the SEC. Nikola did not admit or refute the SEC's allegations. The corporation had previously stated in November that it expected to be hit with a large penalty.
The SEC's enforcement director, Gurbir Grewal, said in a statement that Nikola "is responsible both for Milton's allegedly misleading statements and for other alleged deceptions, all of which falsely portrayed the true status of the company's business and technology."
Nikola said in a statement that it will stick to its plan and develop its manufacturing network.
The corporation is suing Milton for "costs and damages incurred in conjunction with government and regulatory inquiries," according to the statement.
Nikola decided to get listed publicly in June 2020 through a special purpose acquisition company (SPAC), a procedure that the Securities and Exchange Commission (SEC) has chastised for requiring less initial scrutiny than the standard initial public offering (IPO).
The SEC's chair announced earlier this month that the agency was considering tightening restrictions on how underwriters, boards of directors, and sponsors of SPACs structure fees, publish projections, and disclose conflicts. find out more
This year's intentions are part of a larger crackdown on the SPAC business. The Securities and Exchange Commission has also ordered senior auditors to improve their accounting standards and initiated a comprehensive enforcement investigation into Wall Street banks involved in the transactions.
(Source:www.fortune.com)