Nikola Corporation (NKLA) announced in a recent SEC filing that it has successfully recouped approximately $165 million, plus interest, from its founder and former executive chairman, Trevor Milton. The award comes from an arbitration process concerning costs and damages linked to governmental and regulatory inquiries. This includes the SEC settlement and civil penalty from December 2021.
The company also stated its intention to submit an application to the arbitration panel for the recovery of attorney’s fees connected to the dispute.
Trevor Milton, who stepped down from his role at Nikola in 2020, was convicted on three out of four counts of fraud in October 2022. He had previously entered a not guilty plea to the charges of securities and wire fraud. Milton’s request for a new trial was denied in August, as per multiple media accounts.
In 2020, Nikola’s stock value plummeted, causing substantial losses for investors, following reports that cast doubt on Milton’s assertions regarding the company’s production of zero-emission 18-wheel trucks.
Last year, Nikola settled a civil case with the SEC for $125 million, although the firm did not acknowledge any misconduct.
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