(MarketWatch) Nikola Corp. will settle a $125 million fine charged on the company for allegedly misleading investors regarding its offerings and prospects.
The civil charges by the US Securities and Exchange Commission aimed at the company point that between March to September 2020, Nikola defrauded investors on claims of its in-house production, commercial prospects, and financial outlook.
The US regulator accused Nikola of breaking the security laws, with the electric vehicle manufacturer agreeing to cooperate with the ongoing investigations and charges.
Nikola’s founder Trevor Milton also faces separate criminal and civil charges for the misleading information, which was reportedly disseminated through his social media accounts.
The SEC’s charges happen even as the regulator considers tougher rules on special purpose acquisition company listings, which Nikola used to go public in June 2020.
NKLA: NASDAQ is up +3.78%.
