Nikola to Pay $125 Million in SEC Settlement

Nikola is to pay the settlement amount in five installments over the next two years, with the first coming at the end of this year.

Photo: Andreas Gebert/Bloomberg News

Dec. 21, 2021 8:57 am ET

Nikola Corp. agreed to pay $125 million to the Securities Exchange Commission to settle an investigation into former executive chairman.

The payment would be made in five installments over the next two years, with the first coming at the end of this year.

Nikola’s shares rose 1.8% to $9.42 on Tuesday.

The electric-truck startup disclosed last month that it was taking a $125 million reserve from its third-quarter profit as it accounted for the expected settlement.

Nikola didn’t admit or deny wrongdoing.

“We are pleased to bring this chapter to a close as the company has now resolved all government investigations,” Nikola said.

It said it is still seeking reimbursement from founder Trevor Milton for costs and damages related to the government and regulatory investigations.

Nikola was the buzz of Wall Street, trying to cut a path in electric trucking. But then federal prosecutors began investigating claims that it misled investors. WSJ explains Nikola’s roller-coaster journey. Photo Graphic: WSJ (Video from 10/15/20)

Mr. Milton was indicted in July on securities-fraud charges.

Write to Kimberly Chin at [email protected]

Appeared in the December 22, 2021, print edition as ‘Nikola to Pay $125 Million In Settlement.’

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Nikola is to pay the settlement amount in five installments over the next two years, with the first coming at the end of this year.Kimberly Chin