Benzinga | Dec 21, 2021 09:55AM EST

Nikola Prepares To Settle Founder Related Matter Via $125M SEC Penalty

Nikola Corp (NASDAQ:NKLA) will pay a $125 million penalty to the U.S. SEC over allegedly misleading statements its founder and former CEO made about the electric-vehicle startup, Bloomberg reports.

* Former CEO Trevor Milton deceived investors about the company's technological advancements, in-house production capabilities, and truck reservations, alleged the SEC.

* Nikola settled the SEC's allegations without admitting or denying wrongdoing. Milton stepped down in September 2020.

* Nikola was "pleased" with the SEC settlement, and "the company has now resolved all government investigations."

* Nikola would pay the fine in five installments over the next two years and reiterated its intention to seek reimbursement from Milton for the costs and damages in connection to the investigation and other government probes.

* Milton is currently facing criminal and civil charges for his statements.

* Price Action: NKLA shares traded lower by 0.65% at $9.19 in the market session on the last check Tuesday.