Nikola founder Trevor Milton seeks to dismiss two counts of his indictment

Founder of Nikola Corp, Trevor Milton, is hoping a federal judge will throw out two of three indictments accusing him of misleading investors.

Milton filed multiple motions to dismiss charges on Wednesday, noting issues about fair notice and that prosecutors have failed to show how his comments influenced purchases or sales of Nikola stock.

Milton argues that the prosecutors, in this case, are not following the usual procedure in a security fraud case. Typically, alleged misstatements in offering documents or financial statements are the norm.

However, in this case, the government is using tweets, social media posts, podcasts and television or print interviews.

Milton argues that the government is attempting to criminalize promotional speech about Nikola’s products, reports Automotive News.

Last month, Milton filed a motion to throw out the case for lack of proper jurisdiction. In a second motion, Milton requested the judge transfer the case from Arizona to Utah, where he lives.

The judge denied both motions, and Milton is currently appealing.

Milton faces two counts of securities fraud and one count of wire fraud after a Grand Jury indictment in July. Milton pleaded not guilty. He was released on $100 million bail.

Since his indictment, Milton has sold more than $300 million of Nikola stock. It is not clear if he is liquidating the shares to fund his legal defence or a part of a broader planned exit from the stock. Representatives for Milton have not responded to requests for comment on the sale of shares.

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