CASE DEVELOPMENT: Executive Chairman Milton Steps Down; Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $500,000 In Nikola Corporation To Contact The Firm
New York, New York--(Newsfile Corp. - October 1, 2020) - Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Nikola Corporation ("Nikola" or the "Company") (NASDAQ: NKLA) of the November 16, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Nikola stock or options between March 3, 2020 and September 20, 2020 and would like to discuss your legal rights, click here: www.faruqilaw.com/NKLA. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com.
FARUQI & FARUQI, LLP
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New York, NY 10017
Attn: Richard Gonnello, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the District of Arizona on behalf of all those who purchased Nikola securities between March 3, 2020 and September 20, 2020 (the "Class Period"). The case, Borteanu v. Nikola Corporation et al., No. 2:20-cv-01797 has been assigned to Judge John Z. Boyle.
As detailed below, the lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing 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, on September 10, 2020, before market hours, Hindenburg Research published a report describing, among other things, how: (1) the Company claims to design key components in house, but they appear to simply be buying or licensing them from third-parties; (2) the Company has not produced hydrogen; (3) a spokesman for Powercell AB, a hydrogen fuel cell technology company that formerly partnered with Nikola, called Nikola's battery and hydrogen fuel cell claims "hot air"; (4) Nikola staged a "test" video for its Nikola Two; (5) some of Nikola's team, including Defendant Milton, are not experts and do not have relevant experience; and (6) Nikola did not have five Tre trucks completed.
On this news, the Company's stock price fell $10.24, or approximately 24%, over the next two trading sessions, to close at $32.13 per share on September 11, 2020.
Then on September 14, 2020, after market hours, Bloomberg published an article entitled "SEC Examining Nikola Over Short Seller's Fraud Allegations" which announced the SEC examination of Nikola stemming from the Hindenburg Report.
The next day, on September 15, 2020, before trading hours, Hindenburg Research published another report, focused on Nikola's responses and nonresponses to the Hindenburg Report, entitled "We View Nikola's Response As a Tacit Admission of Securities Fraud[.]"
On this news, the Company's stock price fell $2.96, or approximately 8%, over the trading day to close at $32.83 per share on September 15, 2020.
Then, late on September 20, 2020, Nikola issued a press release entitled "Nikola Board of Directors Announces Leadership Transition: Trevor Milton Steps Down as Executive Chairman; Stephen Girsky Appointed Chairman of the Board[.]"
On this news, the Company's stock price fell further.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Nikola Corporation conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/64802