Phoenix-based Nikola Corp. settles with SEC for $125 million | #socialmedia

Nikola Corp., a Phoenix-based manufacturer of zero-emissions heavy trucks, has confirmed that it reached a settlement with federal regulators over allegedly misleading statements made by Trevor Milton, its founder and former CEO.

The company, which recently made its first delivery of Arizona-made trucks, will pay $125 million in civil penalties in five installments over two years as part of the settlement with the U.S. Securities and Exchange Commission. The agreement “resolves and concludes all government investigations of Nikola,” the company said.

Nikola shares were higher in trading Tuesday, and closed up 17 cents per share at $9.42.

The first payment will be made by the end of 2021, with the remaining installments paid semiannually through 2023. Nikola reserved $125 million against its third-quarter earnings to account for the settlement.

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