Nikola’s Founder Has Sold $284 Million of Stock Since Fraud Charges
Nikola’s Founder Has Sold $284 Million of Stock Since Fraud Charges
(Bloomberg) -- Nikola Corp.’s founder sold his biggest batch of shares since the U.S. charged him with securities fraud, bringing the total he’s disposed since August to $284 million.
Trevor Milton offloaded 11.7 million shares worth about $131 million in a series of transactions that ended Tuesday, according to a regulatory filing. Nikola’s former executive chairman sold about $153 million of stock in two rounds of disposals in August, weeks after pleading not guilty to charges he misled investors.
Milton made false and misleading statements regarding almost all aspects of Nikola’s business, according to a criminal indictment unsealed in July. Federal prosecutors took issue with his claims about the startup’s first semi-truck prototype, which was inoperable; a battery-electric and hydrogen-powered pickup that amounted to little more than design sketches; and Nikola’s hydrogen production capabilities, battery-development work and customer orders.
Nikola announced earlier this month it was in talks with the U.S. Securities and Exchange Commission to resolve its investigation and expects to pay a $125 million civil penalty. The company ended September with about $587 million in cash.
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