Securities class action litigation has been filed on behalf of investors in the securities of Nikola Corporation (“Nikola” or the “Company”) f/k/a VectoIQ Acquisition Corp. (“VectoIQ”) (NASDAQ: NKLA; formerly NASDAQ: VTIQ). If you purchased or otherwise acquired the securities of Nikola or VectoIQ between March 3, 2020 and October 15, 2020, inclusive (the “Class Period”), you may move the court for appointment as lead plaintiff by no later than November 16, 2020.
You may retain Lieff Cabraser Heimann & Bernstein, LLP, or other attorneys, as your counsel in the action. Recognized by the National Law Journal as one of the nation’s top plaintiffs’ law firms, Lieff Cabraser is committed to safeguarding the rights of investors and upholding the integrity of the market. We have significant experience and a successful track record of representing institutional and individual investors in securities and financial fraud litigation.
Nikola investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should use the form below or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the Nikola Securities Class Litigation
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. The actions allege that during the Class Period, defendants made materially false and misleading statements and failed to disclose that: (1) Nikola founder and then-Chairman, Trevor Milton, repeatedly overstated and mischaracterized Nikola’s financial, technological, and operational profile; (2) Milton’s misrepresentations were designed to falsely portray Nikola as a successful and growing company; and (3) the foregoing misrepresentations would likely subject Nikola to regulatory scrutiny and enforcement actions, as well as reputational harm after the truth emerged.
On September 10, 2020, before the market opened, research firm Hindenburg Research published a report describing Nikola as “an intricate fraud built on dozens of lies over the course of its Founder and Executive Chairman Trevor Milton’s career.” According to Hindenburg, the report was based on “extensive evidence – including recorded phone calls, text messages, private emails and behind-the-scenes photographs—detailing dozens of false statements by” defendant Milton. Hindenburg claimed that “[w]e have never seen this level of deception at a public company, especially of this size.” Following this news, the price of Nikola common stock fell $4.80 per share, or 11.3%, from its closing price of $42.37 on September 9, 2020 to close at $37.57 on September 10, 2020.
On September 14, 2020, after the market closed, Bloomberg reported that the Securities and Exchange Commission (“SEC”) was examining the merits of the Hindenburg report.
On September 15, 2020, The Wall Street Journal reported that the U.S. Department of Justice joined the SEC in examining allegations that Nikola misled investors by making exaggerated claims about its technology. On that day, the price of Nikola stock fell $2.96 per share, or 8.3%, from its closing price of $35.79 on September 14, 2020 to close at $32.83 on September 15, 2020.
On Sunday, September 20, 2020, Nikola announced that defendant Milton had resigned as Chairman of the Company. Following this news, the price of Nikola stock fell another $6.61 per share, or 19.3%, from its closing price of $34.19 on September 18, 2020, to close at $27.58 on September 21, 2020.
On October 15, 2020, defendant Mark Russell, Nikola’s Chief Executive Officer, suggested that the Company’s partnership with General Motors Co. might fall apart, stating in an interview that “We have the ability and we have a base plan of doing it ourselves. If we have a partner, that just enables us to consider going faster and helps reduce the risk.” On this news, the price of Nikola stock dropped $3.75, or 16.09%, from its closing price of $23.30 on October 15, 2020 to close at $19.55 on October 16, 2020.
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The National Law Journal has recognized Lieff Cabraser as one of the nation’s top plaintiffs’ law firms for fourteen years. In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms “representing the best qualities of the plaintiffs’ bar and that demonstrated unusual dedication and creativity.” Law360 has selected Lieff Cabraser as one of the Top 50 law firms nationwide for litigation, highlighting our firm’s “laser focus” and noting that our firm routinely finds itself “facing off against some of the largest and strongest defense law firms in the world.” Benchmark Litigation has named Lieff Cabraser one of the “Top 10 Plaintiffs’ Firms in America.”