Benzinga | Nov 5, 2021 09:44AM EDT

EV Company Nikola Looks To Settle SEC Investigation By Paying $125M

* Electric truck startup Nikola Corp (NASDAQ:NKLA) will likely settle an SEC investigation for $125 million for alleged misleading statements by its founder and former executive Chairman Trevor Milton.

* The SEC also prosecuted Milton for repeatedly misleading investors about the company's technological advancements, products, in-house production capabilities, and commercial milestones, the Wall Street Journal reports.

* Milton, who resigned in 2020, usurped tens of millions of dollars in personal benefits from the misconduct. Nikola aims to seek reimbursement for the penalty from Milton indicted on fraud charges in July.

* Nikola went public in 2020 via a special-purpose acquisition company (SPAC) merger.

* The SEC closely scrutinized the SPAC market for allowing young, pre-revenue companies to go public at high valuations.

* Related Content: Nikola Founder Trevor Milton Indicted On Fraud Charges

* Price Action: NKLA shares traded lower by 4.99% at $14.67 in the premarket session on the last check Friday.