Nikola Plunges As Founder Indicted For Misleading Investors

© Nikola Motor

By Dhirendra Tripathi – Nikola (NASDAQ:) stock slumped 10% Thursday as the U.S. Department of Justice announced the indictment of its founder Trevor Milton for making false and misleading statements to investors.

The company said Milton resigned from Nikola on September 20 last year and has not been involved in its operations or communications since that time.

“Today’s government actions are against Mr. Milton individually, and not against the company. . .We remain committed to our previously announced milestones and timelines and are focused on delivering Nikola Tre battery-electric trucks later this year. . .,” the company said in a note.

The Justice Department alleges that from November 2019 through September 2020, Milton schemed to defraud investors into buying his company stock through statements about its product launches and technology developments.

Milton has previously denied the allegations.



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