RADNOR, Pa., September 26, 2020 / PRNewswire / – Law firm Kessler Topaz Meltzer & Check, LLP warns investors that a securities fraud class action lawsuit has been filed against Nikola Corporation (NASDAQ: NKLA, NKLAW) (“Nikola”) on behalf of those who have purchased or otherwise acquired Nikola securities Between March 3, 2020 and September 20, 2020, inclusive (the “Class Period”).
Investors who have bought or otherwise acquired Nikola securities during the Recourse Period may, not later than November 16, 2020, seeks to be appointed as the lead representative of class claimants. For more information or to find out how to participate in this dispute, click on https://www.ktmc.com/nikola-corporation-class-action?utm_source=PR&utm_medium=link&utm_campaign=nikola.
According to the complaint, Nikola operates as a supplier of integrated zero-emission transportation systems, which designs and manufactures battery-powered and hydrogen-powered electric vehicles, electric vehicle transmissions, vehicle components, energy storage systems and infrastructure for hydrogen refueling stations. The merger of VectoIQ and Nikola closed on June 3, 2020.
The course period starts on March 3, 2020 when Nikola released a press release titled “Nikola Corporation, a Global Leader in Zero Emission Transportation Solutions, to Be Listed on NASDAQ Through Merger with VectoIQ.” As part of the merger announcement, Nikola issued a presentation to investors on March 3, 2020, who praised the founder and executive chairman of Nikola Trevor R. Milton (“Milton”) clean energy experience and Nikola’s hydrogen production technologies and capabilities.
The complaint alleges that the September 10, 2020, before market hours, Hindenburg Research released a report describing, among other things, how: (i) Nikola claims to design key components in-house, but they appear to simply buy or license them to third parties; (ii) Nikola did not produce hydrogen; (iii) a spokesperson for Powercell AB, a hydrogen fuel cell technology company that had previously partnered with Nikola, called Nikola’s battery and hydrogen fuel cell “hot air”; (iv) Nikola staged a “test” video for his Nikola Two (a prototype truck); (v) some members of Nikola’s team, including Milton, are not experts and do not have relevant experience; and (vi) Nikola had not completed five Tre trucks. Following this news, Nikola’s shares fell $ 10.24, or 24%, over the next two trading days, to close at $ 32.13 per share on September 11, 2020.
Then on September 15, 2020, ahead of trading hours, Hindenburg Research released another report, focused on Nikola’s responses and non-responses to his initial report, titled “We view Nikola’s response as a tacit admission of securities fraud.” . Following this news, Nikola’s shares fell $ 2.96, or 8%, to close at $ 32.83 per share on September 15, 2020.
Finally, on September 20, 2020, Nikola issued a press release titled “Nikola advice of Directors Announce Leadership Transition: Trevor Milton Steps Down as Executive Chairman; Stephen Girsky is appointed Chairman of the Board. “Following this news, Nikola’s stock price fell on the pre-market on September 21, 2020, which still hurts investors.
The complaint alleges that throughout the class action period, the defendants made false and / or misleading representations and / or failed to disclose that: (1) VectoIQ failed to exercise due diligence regarding its merger with Nikola; (2) Nikola overestimated its “in-house” design, manufacturing and testing capabilities; (3) Nikola overestimated its hydrogen production capacity; (4) as a result, Nikola overestimated its ability to reduce the cost of hydrogen fuel; (5) Milton tweeted a misleading “test” video of the Nikola Two truck; (6) the work experience and backgrounds of key Nikola employees, including Milton, had been exaggerated and obscured; (7) Nikola had not completed five Tre trucks; and (8) therefore, the defendants’ public statements were false and / or misleading at all material times.
Nikola investors who wish to discuss this securities fraud class action lawsuit and their legal options are encouraged to contact Kessler Topaz Meltzer & Check, LLP (James Maro, Jr., Esq. or Adrienne Bell, Esq.) at (844) 877-9500 (toll free) or at [email protected].
Nikola investors can, not later than November 16, 2020, seek to be appointed as the principal representative of class claimants through Kessler Topaz Meltzer & Check, or another lawyer, or may choose to do nothing and remain an absent class member. A principal plaintiff is a representative party who acts on behalf of all of the class members in directing the litigation. In order to be appointed as the Principal Plaintiff, the Court must determine that the Class Member’s claim is typical of the claims of other Class Members and that the Class Member will adequately represent the Class. Your ability to participate in any recovery is not affected by the decision whether or not to serve as the principal applicant.
Kessler Topaz Meltzer & Check is pursuing class actions in state and federal courts across the country regarding securities fraud, breach of fiduciary duty, and other violations of state and federal law. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform and has raised billions of dollars on behalf of institutional and individual investors from United States And in the world. The company represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and participate in the recovery of public funds). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information on Kessler Topaz Meltzer & Check, please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
(844) 877-9500 (toll free)
SOURCE Kessler Topaz Meltzer & Check, LLP