Nikola awarded $165 million in arbitration proceeding with founder Trevor Milton
The Phoenix-based electric truck company Nikola has been awarded $165 million in an arbitration proceeding with the company’s founder.
The electric heavy truck maker said in a filing with the Securities and Exchange Commission that it sought reimbursement from Trevor Milton for damages related to a government investigation.
Milton previously pleaded not guilty to securities and wire fraud. The former executive, who resigned from Nikola in 2020, was found guilty on three of four counts of fraud in October 2022.
Nikola’s stock price plunged in 2020, and investors suffered heavy losses as reports questioned Milton’s claims that the company had already produced zero-emission 18-wheel trucks.
The company paid $125 million in 2021 to settle a civil case against it by the SEC. Nikola didn’t admit any wrongdoing.
Nikola says it plans to file for attorneys fees with the arbitration panel.
Shares of the Phoenix-based company soared more than 19% in morning trading on Tuesday.
