Nikola Corporation f/k/a VectoIQ Acquisition Corp. Class Action Lawsuit
- Company Name
- Nikola Corporation f/k/a VectoIQ Acquisition Corp.
- Stock Symbol
- NKLA; VTIQ
- Class Period
- March 3, 2020 to September 15, 2020
- District of Arizona
The Nikola Corporation f/k/a VectoIQ Acquisition Corp. class action lawsuit charges Nikola and certain of its officers with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of Nikola securities between March 3, 2020 and September 15, 2020, inclusive (the “Class Period”). The Nikola class action lawsuit was commenced on September 15, 2020 in the District of Arizona and is captioned Borteanu v. Nikola Corporation, No. 20-cv-1797.
Nikola operates as an integrated zero emissions transportation systems provider that designs and manufactures battery-electric and hydrogen-electric vehicles, electric vehicle drivetrains, vehicle components, energy storage systems, and hydrogen fueling station infrastructure.
The Nikola class action lawsuit alleges that on September 10, 2020, before market hours, Hindenburg Research published a report (the “Report”) describing, among other things, how: (i) the Company had falsely claimed to design key components in house, but the components were actually procured from third parties; (ii) the Company had vastly overstated its hydrogen production capabilities; (iii) Nikola had staged a “test” video which appeared to show one of its prototype electric vehicles driving, when it was simply rolling downhill; (iv) senior Nikola executives and employees had exaggerated their qualifications and experience; and (v) Nikola had misrepresented the number of vehicles manufactured to date.
Following this news, the price of Nikola shares fell $10.24 per share, or 24%, over two trading days, to close at $32.13 per share on September 11, 2020.
Subsequently, on September 14, 2020, Bloomberg published an article, entitled “SEC Examining Nikola Over Short Seller’s Fraud Allegations,” which announced an SEC investigation of Nikola stemming from the Report. On this news, the price of Nikola shares declined in after-hours trading, further damaging investors.
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