Nikola Corp. is expecting to pay a lot of money to the U.S. Securities and Exchange Commission (SEC) to settle the ongoing case against founder Trevor Milton.
On Thursday the company announced it has reserved $125 million to fund a potential settlement with the government agency.
“With prospects of an SEC settlement, we’re looking forward to resolving the outstanding issues relating to our founder and bringing that chapter to a close,” Nikola Chief Executive Officer Mark Russell said. (via Reuters)
Nikola Corp. is expecting the case to be resolved soon, and if approved, the $125 settlement will be paid in installments over time.
In July 2021 Milton was indicted on three counts of fraud for “repeatedly disseminating false and misleading information” through his social media accounts.
The charges came 10 months after Milton resigned from the company he founded. While he was able to retain his shares in the company, Nikola said they will be seeking reimbursement from Milton in connection with the investigations.