Nikola Agrees to $150 Million Fine with US SEC Over Investor Misleading Allegations

▲Nikola founder Trevor Milton (right) [Image source=AP Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Nikola, a US electric truck company accused of misleading investors during its special purpose acquisition company (SPAC) listing process, has agreed to pay a $125 million (approximately 150 billion KRW) fine to the US Securities and Exchange Commission (SEC).

On the 21st (local time), major foreign media including The Wall Street Journal (WSJ) reported that Nikola agreed to pay a $125 million fine to the SEC for providing exaggerated and false information to investors during its SPAC listing process. Nikola's founder, Trevor Milton, allegedly misled investors regarding the products, production capacity, and sales prospects. Nikola plans to pay the fine in five installments over two years, deducting a portion from its third-quarter earnings.

Following the agreement, Nikola stated in a press release, "We are pleased to have reached a smooth resolution with the authorities and to move on to the next phase."

However, the company added that it is seeking ways to hold founder Milton accountable for the damages caused to the company due to his fraud allegations.

Major foreign media interpreted the SEC's announcement as a sign of increased scrutiny on SPAC listings.

Accordingly, attention is focused on whether other companies under SEC investigation, such as Lucid, will follow a similar path. Companies that have undergone SPAC listings, including Nikola, Roadstone Motors, and Kanu, have been investigated by the SEC.

The SEC emphasized, "The fine imposed on Nikola will serve as a warning to companies seeking to enter the securities market through SPAC mergers," adding, "Trust is essential to entering the capital market."

This content was produced with the assistance of AI translation services.