Embattled new energy vehicle startup Nikola said in a statement this week that it has been engaged in discussions with the government following a U.S. Securities and Exchange Committee investigation that could see it pay a $125 million civil penalty.
The company was investigated by the SEC following allegations made by Hindenburg Capital that its founder, Trevor Milton, had misled investors on “nearly all aspects” of the company. Indeed, the SEC charged Milton on three counts of fraud.
For its role in the drama, the company looks set to pay the government $125 million in civil penalties if the resolution is approved, contingent on a vote of SEC commissioners. Per CNBC, the fine is a “best estimate” of the penalty, and the company will look to pay it over the course of two years.
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In addition, Nikola said it intends to seek reimbursement from Milton, “for costs and damages in connection with the government and regulatory investigations.” The company elaborated no further on what that means, but in 2020 it paid about $1.5 million of Milton’s legal fees.
“With prospects of an SEC settlement, we’re looking forward to resolving the outstanding issues relating to our founder and bringing that chapter to a close and maintaining our focus on delivering trucks to our customers and building the energy, service, and support infrastructure our customers need,” said current CEO Mark Russel.
Following the announcement, Nikola’s shares were trading 19 percent higher on Thursday than they had earlier that week, per Yahoo! Finance.
