SAN FRANCISCO, Nov. 14, 2020 (GLOBE NEWSWIRE) -- Hagens Berman urges Nikola Corporation (NASDAQ: NKLA) investors to contact the firm now. A securities fraud class action has been filed and NKLA investors may have sufficient losses to move for lead plaintiff.
Class Period: Mar. 3, 2020 - Sept. 20, 2020
Lead Plaintiff Deadline: Nov. 16, 2020
Visit: www.hbsslaw.com/investor-fraud/NKLA
Contact An Attorney Now: NKLA@hbsslaw.com
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Nikola Corporation (NKLA) Securities Class Action:
The Complaint alleges that throughout the Class Period, Defendants falsely stated or omitted, among other things, that: (1) Nikola overstated its in-house design, manufacturing, and testing capabilities; (2) exaggerated its hydrogen production capabilities; (3) as a result, Nikola overstated its ability to lower the cost of hydrogen fuel; (4) Nikola founder and Executive Chairman, Trevor Milton, tweeted a misleading test video of the Company’s Nikola Two truck; (5) the work experience and background of key Nikola employees, including Mr. Milton, had been overstated and obfuscated; and (6) Nikola did not have five Tre trucks completed.
Investors learned the truth through a series of partial disclosures, beginning on Sept. 10, 2020, when Hindenburg Research published a scathing report accusing Nikola of lying about its truck’s capabilities, partnerships and products, and ending on Sept. 20, 2020, when Milton abruptly resigned.
These events have driven the price of Nikola shares sharply lower.
Significantly, less than a month before these disclosures, on Aug. 11, 2020, In-Cap, an entity indirectly controlled by Nikola director Jeffrey Ubben, sold 1.4 million Nikola shares at $42.69/share for a total of over $59 million. While Ubben reportedly contends the suspiciously timed sale was forced on him by “investor redemptions,” Hagens Berman is actively investigating the validity of this claim.
On Sept. 29, 2020 CNBC reported a second sexual abuse allegation against Milton and that the widely-touted partnership with GM announced earlier in the month is not a “done deal.”
Most recently, on Nov. 9, 2020, Nikola revealed that during Sept. 2020 the SEC and two grand juries served subpoenas on the Company, Milton, and other officers, all of which are related to Hindenburg’s findings on the Company.
“We’re focused on (i) investors’ losses, (ii) proving Nikola misrepresented its truck’s functionality, its technology and partnerships, and (iii) whether Nikola stakeholders like Ubben engaged in unlawful insider trading,” said Reed Kathrein, the Hagens Berman partner leading the investigation.