Nikola Corporation f/k/a VectoIQ Acquisition Corp. Class Action Lawsuit

Case Summary

Company Name
Nikola Corporation f/k/a VectoIQ Acquisition Corp.
Stock Symbol
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.

Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation.  With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history.  For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements.  Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims.  Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide.  Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.

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