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In the Matter of Nikola Corporation
Admin. Proc. File No. 3-20687

Feb. 8, 2023

On December 21, 2021, the Commission instituted and simultaneously settled cease-and-desist proceedings (the “Order”) against Nikola Corporation (“Nikola” or the “Respondent”). In the Order, the Commission found that from at least March 2020 through September 2020, Nikola, a publicly traded zero emissions transportation system provider, made material misrepresentations to investors about key aspects of its business. According to the Order, through misrepresentations made by its CEO and later Executive Chairman, Trevor R. Milton (“Milton”), Nikola misled investors about, among other things, about its technical advancements, in-house production capabilities, reservation book, and financial outlook, all aimed at inflating and maintaining Nikola’s stock price. In addition, the Commission found that Nikola failed to maintain disclosure controls and procedures as required by the Exchange Act rules for issuers with a class of securities registered under the Securities Exchange Act of 1934.

The Commission ordered Nikola to pay a $125,000,000.00 civil money penalty to the Commission, pursuant to a payment plan detailed therein. The Commission also created a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, so the penalty paid can be distributed to harmed investors (the “Fair Fund”). See the Commission’s Order: Release No. 33-11018.

The Fair Fund includes the $30,000,000.00 paid to date by the Respondent, and any additional funds collected, received pursuant to the Order will be added to the Fair Fund. The Fair Fund and has been deposited in a Commission-designated account at the U.S. Department of the Treasury, and any interest accrued will be added to the Fair Fund.

On January 23, 2023, the Commission issued an order appointing Heffler, Radetich & Saitta, LLP, as the Tax Administrator of the Fair Fund. See the Commission’s Order: Release No. 34-96736.

On March 1, 2023, the Commission issued an order appointing Analytics Consulting LLC, as the Fund Administrator to oversee the administration and distribution of the Fair Fund and, set the administrator’s bond amount. See the Commission’s Order: Release No. 34-96998.

For more information, please contact the Commission:

Office of Distributions

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