Nikola pays $125M to settle SEC fraud allegations
Hydrogen-electric truck startup Nikola agreed to pay $125 million in a deal with the SEC after the agency accused the company's founder of misleading the public.
Driving the news: The SEC announced the settlement Tuesday but said it would continue its investigation, which has already led to fraud charges against former Nikola boss Trevor Milton.
- Milton misled investors about Nikola's technology, production capacity, reservations and finances, the SEC alleged. Nikola did not acknowledge wrongdoing but agreed to continue to cooperate with the probe.
- The money will be distributed to "victim investors," the SEC said.
- Nikola confirmed the deal and said it's "taken action to seek reimbursement" from Milton, who pleaded not guilty to the SEC's charges.
The bottom line: The accusations against Milton dealt a severe setback to Nikola, but it did not lead to the company's collapse. Nikola still has a shot at delivering the hydrogen-electric technology it's promised.