It appears that an SEC investigation into Nikola Corp (NASDAQ: NKLA) has resulted in the company being forced to pay hefty fines as a result of the findings. Notably, however, the company did not have to admit to the findings, and instead was able to settle while saving a little bit of face.
In total, the company is being forced to pay $125 million in civil penalties related to the findings from the investigation. Those penalties, which include charges related to misleading investors about products, technical advancements, and commercial prospects, are largely centered around actions conducted by the firms founder, Trevor Milton, whom has now left the company.
The company has indicated it will be repaying those penalties over five installments, with the first to be paid by the end of this year. Further payments will be made semiannually through 2023.
However, the investigation is not yet over, with the ongoing litigation and investigation set to continue with the assistance of Nikola, suggesting the SEC is still looking to further penalize Milton directly. Nikola has also indicated it is taking action to seek reimbursement from Milton for costs and damages related to the investigation.
Nikola Corp last traded at $9.25 on the Nasdaq.
Information for this briefing was found via Edgar, the SEC and Nikola Corp. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.