Nikola Corporation (NKLA)

[I-Man]

Nikola to Pay $125 Million in SEC Settlement
8:57 am ET December 21, 2021 (Dow Jones)

Nikola Corp. has agreed to pay $125 million to the U.S. Securities Exchange Commission to settle an investigation into allegedly misleading statements made by its founder and former executive chairman.

The payment would be made in five installments over the next two years, with the first coming at the end of this year.

Nikola's shares rose 4% in pre-market trading, to $9.62.

The electric-truck startup disclosed last month that it was taking a $125 million reserve from its third-quarter profit as it accounted for the expected settlement.

Nikola didn't admit or deny wrongdoing.

"We are pleased to bring this chapter to a close as the company has now resolved all government investigations," Nikola said.

It said it is still seeking reimbursement from founder Trevor Milton for costs and damages related to the government and regulatory investigations.

Write to Kimberly Chin at [e-mail]