Nikola sets aside $125 million to settle with SEC – TechCrunch

Electrical truck developer Nikola Corp. is in talks with the U.S. Securities Trade Commission to pay a $125 million civil penalty, section of an ongoing probe by the regulator into whether the firm mislead traders, the firm reported in its third-quarter earnings.

Nikola would pay the settlement in installments, and had earmarked the funds in anticipation of a dedication, the firm mentioned in its third quarter earnings results.

In line with the constructing of discussions with the SEC in October 2021, Nikola “reserved a $125 million loss as its easiest estimate of the contingency in amassed liabilities as of September 30, 2021,” the firm’s earnings document mentioned.

In the period in-between, Nikola’s beleaguered founder, Trevor Milton, has been busy alongside with his have prison protection. He faces two separate prices: one from the SEC, for alleged violations of securities law, and a prison indictment from the U.S. Prison knowledgeable’s Place of work for two counts of securities fraud and one rely of wire fraud.

The firm continues to pay for his lawyer’s charges, which came in at a heed of round $12.6 million for the key nine months of this year. Nikola mentioned that it would gaze repayment from Milton, “for prices and damages in connection with the authorities and regulatory investigations.” As of the stop of September, he owned round 16% of Nikola stock.

To claim that the past financial year has been a battle for the firm will be an underestimation. Nikola was flying excessive closing September, when it announced a $2 billion strategic partnership with Traditional Motors that integrated the automaker taking an 11% stake in the then-startup and manufacturing terms for Nikola’s fuel cell pickup (that pickup has since been squashed). But correct a month later, GM backed out of the deal, after the SEC opened the investigation following a document from quick-seller Hindenburg Study.

The dedication to pay $125 million to the SEC must first be licensed by the regulator, Nikola told traders.

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