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Nikola expects $125 million SEC penalty under proposed resolution

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Nikola Motor Firm
Supply: Nikola Motor Firm

Embattled electrical truck maker Nikola expects to incur a civil penalty of $125 million below a possible decision with the Securities and Change Fee concerning the corporate deceptive buyers.

The corporate Thursday mentioned it has “been engaged in discussions concerning a decision” to the probe that, if authorized, would come with a $125 million civil penalty paid in installments over time. The deal is contingent on a vote of the SEC commissioners, Nikola mentioned in a launch.

The SEC didn’t instantly reply for remark.

The SEC opened the investigation following short-seller Hindenburg Analysis accusing the corporate and its founder and CEO Trevor Milton of mendacity to buyers about Nikola’s enterprise and applied sciences.

The SEC probe is separate from one by the Division of Justice in addition to prison fraud prices in opposition to Milton that have been introduced in June. A federal grand jury accused Milton of mendacity about “practically all elements of the enterprise” to bolster inventory gross sales of the electrical car start-up

Individually, Nikola mentioned it would search reimbursement from Milton for prices and damages in reference to the federal government and regulatory investigations. In 2020, Nikola paid about $1.5 million of Milton’s authorized charges.

The actions have been introduced along side the corporate reporting its third-quarter outcomes, together with an adjusted 22-cent loss per share that was narrower than the 28-cent loss anticipated by analysts compiled by Refinitiv.

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