Nikola changed its social media passwords and even tried “an intervention” to rein in founder Trevor Milton’s social media activities, CEO Mark Russell testified Tuesday in Milton’s fraud trial.
The chief executive described his relationship with Milton as strained to the point where he considered resigning from the electric truck manufacturing startup because Milton wanted to remain CEO after the company went public via special purpose acquisition company VevtoIQ in June 2020.
“Trevor said,...
Nikola Corp. CEO Mark Russell testified Monday that founder Trevor Milton went on a publicity “blitz” to attract retail shareholders to the startup’s stock because he was dissatisfied with the performance of bankers hired to promote the company.
Milton, 40, is on trial on four counts of fraud related to lying about the company’s technology achievements and progress to boost Nikola’s stock price. If convicted of defrauding investors, he could receive a maximum 25-year federal prison sentence.
Assis...
Nikola founder Trevor Milton “doubled down on his lies” after his chicanery involving a nonrunning prototype fuel cell truck was discovered, a federal prosecutor said in his opening statement of Milton’s securities and wire fraud trial Tuesday.
But Milton’s defense lawyers countered that he never intended to deceive anyone and that he committed no crimes. He is charged with two counts each of securities fraud and wire fraud.
“The government says that Trevor’s statements were significant to...
As Nikola founder Trevor Milton’s fraud trial begins, it is possible to find similarities to Theranos founder Elizabeth Holmes, who is awaiting sentencing on her conviction of defrauding investors. Neither side is looking for a plea deal to avoid a trial, they told U.S. District Judge Edgardo Ramos on Thursday.
Here are five things to consider about Milton’s case.
The prosecution may be seeking to make an example of MiltonThe 40-year-old Milton faces two counts of securities fraud and two counts...
https://www.freightwaves.com/news/5-things-to-know-as-trevor-miltons-criminal-fraud-trial-begins
With his criminal fraud trial scheduled to start on Sept. 12, Nikola Corp. founder Trevor Milton purchased 3 million shares of the electric truck maker’s stock, reversing a pattern of share dumping that raised tens of millions.
The move could prove profitable for Milton, who purchased the shares at $5.80 each, according to a Securities and Exchange Commission filing dated Wednesday. He sold 15 million shares in November for about $174 million.
Milton voted in June against a company proposal to...
https://www.freightwaves.com/news/guess-whos-buying-nikola-stock
Indicted Nikola Corp. founder Trevor Milton claims the electric truck manufacturer is violating his constitutional rights. Nikola seeks a protective order to block his attorneys from using conversations between the company lawyer and employees in his upcoming trial.
“With his liberty at stake, Mr. Milton has the right to present a complete and robust defense rather than one compromised by Nikola’s artificial and self-serving assertion of the attorney-client privilege to hide critical testimony,”...
https://www.freightwaves.com/news/indicted-founder-claims-nikola-violating-his-constitutional-rights
As the date of his federal fraud trial nears, Nikola founder Trevor Milton casts a long shadow over his own fate and that of the electric truck manufacturer.
Milton has not actively participated in the startup electric truck and hydrogen maker’s business in more than 16 months. Yet his influence as a major shareholder weighs heavily on the company.
Most recently his vote against increasing the number of authorized shares in Nikola — a move that would dilute his approximately 11% ownership stake —...
https://www.freightwaves.com/news/commentary-miltons-long-shadow-holds-his-own-fate-and-nikolas
Nikola Corp. (NASDAQ: NKLA) is showing its battery-electric Class 8 Tre prototype to fleets, seeking launch customers who want more than one or two trucks to test.
The Phoenix-based startup is sticking with its estimate of delivering 50 to 100 Class 8 battery-electric trucks in the fourth quarter. But CEO Mark Russell, speaking on a Q1 earnings call Friday, said supply constraints for a variety of parts could reduce that number. Microchips and touchscreens are particular concerns.
“We’ve...
A New York district court overseeing the bankruptcy of LATAM Airlines Group (NYSE: LTM) approved a financing proposal to allow the Chilean carrier to access $2.45 billion for countering the impact of the coronavirus pandemic.
Judge James Garrity Jr. of the U.S. District Court for the Southern District of New York approved LATAM’s modified debtor-in-possession (DIP) financing proposal Friday.
LATAM CEO Roberto Alvo called the DIP’s approval “a very important step for the sustainability of the...
https://www.freightwaves.com/news/bankrupt-latam-gets-financial-lifeline
As media coverage dies down on a short seller’s report questioning Nikola Corp.’s integrity, company executives are making the rounds of analyst events. They are touting the startup electric truck maker’s business case, including new details of its network of hydrogen stations.
Nikola (NASDAQ: NKLA) is silent on whether the U.S. Securities and Exchange Commission (SEC) and the U.S. District Court for the Southern District of New York (SDNY) are investigating allegations in a Sept. 10 Hindenburg...
https://s29755.pcdn.co/news/nikola-will-truck-hydrogen-to-stations-when-electricity-costs-too-much