Nikola founder and former CEO Trevor Milton was convicted of three fraud charges in October 2022.
Massimo Pinca | Reuters
Electric truck maker stocks Nikola Shares were trading higher on Tuesday afternoon, the company said in a regulatory note Archive Its disgraced founder Trevor Milton has been ordered to pay the company some $165 million in damages.
Shares rose about 9%.
Nikola said an arbitration panel in New York ruled last week that Nikola should pay “costs and damages arising from conduct investigated by governments and regulators, including the December 2021 SEC settlement and related Civil penalties.” “
Nikola agreed in December 2021 to pay $125 million to the SEC to settle charges that it deceived investors by misleading them about its products, technological capabilities and business prospects.
Nikola said in a statement that it also intends to seek reimbursement of attorney fees.
Milton founded Nikola in 2014 and serves as CEO and executive chairman. Milton resigned in September 2020 after short-seller Hindenburg Research accused Nikola of making false statements about its technology to boost its stock price and secure partnerships with major automakers.
Milton was convicted in federal court last year of three counts of fraud related to comments he made while leading the company. He is expected to be sentenced on November 28.
Nikola will announce third-quarter results on November 2 before the U.S. stock market opens.
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