Nikola to pay $125 million to settle fraud charges as SEC cracks down on SPAC claims


Trevor Milton CEO of Nikola

Massimo Pinca | Reuters

Electric truck maker Nikola has agreed to pay the Securities and Exchange Commission $125 million to settle charges it defrauded investors by misleading them about its products, technical capacity and business prospects.

SEC officials said they hoped the penalty would serve as a warning to all companies aiming to enter public markets via a merger deal with a special-purpose acquisition company, or SPAC. Specifically, officials said statements from companies hoping to tap public capital markets need to be wholly accurate.

The action, announced Tuesday morning, marked the SEC’s most recent move to more thoroughly regulate SPACs, which are…


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