Nikola sets aside $125 million to settle with SEC

Electric truck developer Nikola Corp. is in talks with the U.S. Securities Alternate Commission to pay a $125 million civil penalty, piece of an ongoing probe by the regulator into whether the firm lie to 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 resolution, the firm talked about in its third-quarter earnings results.

Based on the pattern of discussions with the SEC in October 2021, Nikola “reserved a $125 million loss as its finest estimate of the contingency in accumulated liabilities as of September 30, 2021,” the firm’s earnings chronicle talked about.

Within the meantime, Nikola’s beleaguered founder, Trevor Milton, has been busy along with his dangle criminal defense. He faces two separate bills: one from the SEC, for alleged violations of securities regulations, and a criminal indictment from the U.S. Felony legitimate’s Diagram of job for two counts of securities fraud and one depend of wire fraud.

The firm continues to pay for his felony legitimate’s bills, which came in at a label of spherical $12.6 million for the first nine months of this year. Nikola talked about that it would learn about compensation from Milton, “for costs and damages in connection with the federal government and regulatory investigations.” As of the tip of September, he owned spherical 16% of Nikola stock.

To relate that the past monetary year has been a fight for the firm would be an underestimation. Nikola used to be flying excessive final September, when it announced a $2 billion strategic partnership with Authorized Motors that included the automaker taking an 11% stake in the then-startup and production terms for Nikola’s gas cell pickup (that pickup has since been squashed). However simply a month later, GM backed out of the deal, after the SEC opened the investigation following a chronicle from quick-seller Hindenburg Study.

The resolution to pay $125 million to the SEC must first be authorised by the regulator, Nikola instructed traders.

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