Schubert Jonckheer & Kolbe LLP announces that it has filed a class action lawsuit in the U.S. District Court for the District of Arizona against Nikola Corporation for violations of the federal securities laws, captioned Eves v. Nikola Corporation, et al., No. 2:20-at-99911. Investors with losses in Nikola stock are encouraged to contact the firm.
Nikola, headquartered in Phoenix, Arizona, describes itself as a designer and manufacturer of zero-emission battery-electric and hydrogen-electric vehicles, electric vehicle drivetrains, vehicle components, energy storage systems, and hydrogen station infrastructure. On September 10, 2020, Hindenburg Research (“Hindenburg”), a company that specializes in forensic financial research, published a scathing report entitled “Nikola: How to Parlay An Ocean of Lies Into a Partnership With the Largest Auto OEM in America.” The Hindenburg report indicated that Hindenburg had gathered “extensive evidence—including recorded phone calls, text messages, private emails and behind-the scenes photographs.” The Hindenburg report represented that it had identified “dozens of false statements by” founder and chairman Trevor Milton.
On this news, the Company’s stock price fell $4.80 per share, or 11.33%, to close at $37.57 per share on September 10, 2020. The stock continued to fall on this news to a September 11, 2020 close of $32.13 per share, a two day drop of approximately 24%.
On September 14, 2020, after the markets had closed, Bloomberg reported that the U.S. Securities and Exchange Commission was investigating Nikola to assess the merits of the Hindenburg report. On September 14, 2020, Nikola issued a response to the Hindenburg report attempting to deny some, but not all, of the allegations. Then, on September 15, 2020, the Wall Street Journal reported that the U.S. Department of Justice was also investigating Nikola. Also on September 15, 2020, Hindenburg released a second report addressing Nikola’s response, including highlighting many of the allegations by Hindenburg that Nikola had failed to dispute.
On this news, Nikola’s stock fell an additional $0.17 per share during intraday trading, to close at $32.83 on September 15, 2020, an 8.27% decline from its previous close on September 14, 2020.
About Schubert Jonckheer & Kolbe
Schubert Jonckheer & Kolbe represents shareholders, employees, and consumers in class actions against corporate defendants, as well as shareholders in derivative actions against their officers and directors. The firm is based in San Francisco, and with the help of co-counsel, litigates cases nationwide. Attorney advertising. Prior results do not guarantee similar outcomes.
Willem F. Jonckheer
Schubert Jonckheer & Kolbe LLP