SEC Charges Nikola Corporation $125 Million for SPAC-Related Fraud and False Claims

confirmed Importance 8/10 ~1 min read 3 sources 4 actors

The SEC settled fraud charges against Nikola Corporation for $125 million, finding the electric vehicle company made materially false and misleading statements about its products, technical capabilities, and partnerships during its 2020 SPAC merger. Founder Trevor Milton falsely claimed the Nikola One semi-truck was functional when a demonstration video actually showed the truck being rolled downhill. The settlement followed Milton’s criminal indictment for fraud and preceded Nikola’s Chapter 11 bankruptcy filing in February 2025. The SEC became the largest unsecured creditor in Nikola’s bankruptcy, with about $80 million in claims.

Sources & Citations

[1] SEC Charges Nikola and its Founder with Fraud · Dec 21, 2021 Tier 1

[2] Nikola Corp. agrees to pay $125 million penalty to SEC · Dec 21, 2021 Tier 3

[3] Nikola Bankruptcy Strands SEC's $80 Million Claim Atop List of Unpaid Bills · Feb 20, 2025 Tier 1

Tiers Tier 1 court records & gov docs · Tier 2 established outlets · Tier 3 regional & specialty press · Tier 4 opinion or single-source. Methodology →

Cite this entry

The Cascade Ledger. “SEC Charges Nikola Corporation $125 Million for SPAC-Related Fraud and False Claims.” The Capture Cascade Timeline, December 21, 2021. https://capturecascade.org/event/2021-12-21--nikola-corporation-sec-fraud-settlement-125-million/