The Complaint alleges that throughout the Class Period, Defendants falsely stated or omitted that: (1) VectoIQ did not engage in proper due diligence regarding its 2020 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; and (7) Nikola did not have five Tre trucks completed.
Investors allegedly began to learn the truth on Sept. 10, 2020, when Hindenburg Research published a scathing report accusing Nikola and senior management of lying about its truck's capabilities, partnerships and products.
On Sept. 14 & 15, 2020, media outlets reported Nikola is facing a probe by the SEC and the DOJ into Hindenburg's accusations.
Then, on Sept. 15, 2020, Hindenburg published another report concluding that Nikola's purported failure to provide a substantive response to its exposé as "as a tacit admission of securities fraud."
These events have driven the price of Nikola shares sharply lower.
"We're focused on investors' losses and proving Nikola misrepresented its truck's functionality, its technology and partnerships," said Reed Kathrein, the Hagens Berman partner leading the investigation.
Whistleblowers: Persons with non-public information regarding Nikola should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
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