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Oklahoma City, OK (September 17, 2020) – On September 15, 2020, a securities class action lawsuit was filed in the United States District Court for the District of Arizona against Nikola Corporation (NASDAQ: NKLA). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is March 3, 2020 through September 15, 2020. More specifically, according to the Complaint, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) VectoIQ did not engage in proper due diligence regarding its merger with Nikola; (2) Nikola overstated its “in-house” design, manufacturing, and testing capabilities; (3) Nikola overstated its hydrogen production capabilities; (4) as a result, Nikola overstated its ability to lower the cost of hydrogen fuel; (5) Nikola founder and Executive Chairman, Trevor Milton, tweeted a misleading “test” video of the Company’s Nikola Two truck; (6) the work experience and background of key Nikola employees, including Mr. Milton, had been overstated and obfuscated; (7) Nikola did not have five Tre trucks completed; and (8) as a result, defendants’ public statements were materially false and/or misleading at all relevant times. According to the suit, these true details were disclosed by a market research firm.
On September 10, 2020, Hindenburg Research published a report entitled “Nikola: How to Parlay an Ocean of Lies into a Partnership with the Largest Auto OEM in America.” Therein, Hindenburg alleged that the Company’s founder, Trevor Milton, had misled partners into signing agreements by falsely claiming to have extensive proprietary technology. Among other things, the report claimed that Milton had staged a video of Nikola’s semi-truck cruising down a road by filming the truck rolling down a hill and that, despite claiming Nikola designs all key components in house, the Company appears to simply be buying or licensing them from third-parties. On this news, the Company’s share price fell $10.24, or 24%, over two consecutive trading sessions to close at $32.13 per share on September 11, 2020, thereby injuring investors.
On September 14, 2020, after the market closed, Bloomberg reported that the SEC was “examining” Nikola over the Hindenburg report’s allegations.
On September 15, 2020, before the market opened, Hindenburg published another report focusing on Nikola’s response, entitled “We View Nikola’s Response As a Tacit Admission of Securities Fraud[.]” On this news, the Company’s shares fell $2.96, or 8%, to close at $32.83 per share on September 15, 2020, thereby injuring investors further.
Plaintiff seeks to recover damages on behalf of all Nikola Corporation shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Monday, November 16, 2020 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
If you wish to discuss this action, obtain further information and participate in this or any other securities litigation, or should you have any questions or concerns regarding this notice or preservation of your rights, please contact: Robin Hester at email@example.com