Nikola Corp., the electric and hydrogen-powered heavy truck manufacturer, has emerged victorious in an arbitration proceeding against its founder and former executive chairman, Trevor Milton. According to a regulatory filing, the company has been granted a substantial sum of $165 million in compensation. This development prompted an immediate surge in Nikola’s shares following the announcement.
At the time of this publication, Nikola Corp stock (NKLA) has witnessed a surge.
Nikola Corp
Current Price: $1.05
Change : +0.10
Change (%): (9.97%)
Volume: 62.5M
Source: Tomorrow Events Market Data
In a filing submitted to the Securities and Exchange Commission, Nikola outlined its pursuit of reimbursement from Trevor Milton. This sought-after compensation pertains to costs and damages incurred due to actions connected with government and regulatory investigations. These include a significant settlement with the SEC in December 2021, accompanied by an associated civil penalty.
Trevor Milton had previously entered a plea of not guilty to charges of securities and wire fraud. However, in October 2022, the former executive, who tendered his resignation from Nikola in 2020, was found guilty on three out of four counts of fraud. Reports from various media outlets confirm that in August, Milton’s bid for a retrial was unsuccessful.
The tumultuous journey of Nikola’s stock price in 2020 left investors grappling with substantial losses. This was a consequence of reports casting doubt on Milton’s assertions that the company had already successfully produced emission-free 18-wheel trucks.
In 2021, Nikola opted to settle a civil case with the SEC by paying a sum of $125 million, a move that did not involve an admission of wrongdoing on the company’s part.
In light of this favorable arbitration outcome, Nikola intends to submit an application to the arbitration panel for the recovery of attorneys’ fees linked to this matter from the founder.
On November 2, Nikola is slated to disclose its financial performance for the third quarter. Forecasts from Benzinga Pro indicate an anticipated loss of 15 cents per share, with projected revenue amounting to $15.024 million.
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