The U.S. Justice Department has joined the Securities and Exchange Commission (SEC) in analyzing allegations into Nikola.
Just days after a bombshell report from short-seller Hindenburg Research labeled the EV startup as an “intricate fraud,” it has been revealed that the Justice Department’s Manhattan U.S. legal professional’s workplace is investigating claims the corporate misled traders by making exaggerated claims about its expertise.
This information comes shortly after it was revealed that the SEC has additionally initiated its personal examination of the claims about Nikola, The Wall Street Journal Reports.
It is known that the SEC remains to be in its early levels of reviewing the claims leveled towards Nikola with an individual acquainted with the matter including that it stays unclear how far alongside the Justice Department is with its personal probe. Whereas the SEC can provoke civil fees towards Nikola if there’s proof of wrongdoing, the Justice Department can deliver federal prison fees.
In a press release, a Nikola consultant didn’t touch upon whether or not the corporate had been contacted by the Manhattan D.A., merely stating, “When we have something to disclose, we will.”
In Hindenburg Research’s report into Nikola, it’s claimed that Nikola founder Trevor Milton has made “dozens of false statements.” More particularly, it’s claimed that when Milton stated the Nikola One was a totally functioning truck when it was unveiled, it really wasn’t and was as a substitute setup to run on compressed pure gasoline.
The short-seller additionally asserted that Nikola used a non-running truck in a promotional clip for the Nikola One and slightly than really driving it, as a substitute confirmed it rolling down a hill. Nikola has since defended itself, stating that it by no means claimed the automobile was shifting below its personal energy.