BENSALEM, Pa., Sept. 30, 2020 /PRNewswire/ — Law Offices of Howard G. Smith reminds investors of the upcoming November 16, 2020 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who acquired Nikola Corporation (“Nikola” or the “Company”) (NASDAQ: NKLA) securities between March 3, 2020 to September 20, 2020, inclusive (the “Class Period”).
On September 10, 2020, Hindenburg Research published a report entitled “Nikola: How to Parlay an Ocean of Lies into a Partnership with the Largest Auto OEM in America.” Therein, Hindenburg alleged that the Company’s founder, Trevor Milton, had misled partners into signing agreements by falsely claiming to have extensive proprietary technology. Among other things, the report claimed that Milton had staged a video of Nikola’s semi-truck cruising down a road by filming the truck rolling down a hill and that, despite claiming Nikola designs all key components in house, the Company appears to simply be buying or licensing them from third-parties.
On this news, Nikola’s share price fell sharply during intraday trading on September 10, 2020.
On September 14, 2020, after the market closed, Bloomberg reported that the SEC was “examining” Nikola over the Hindenburg report’s allegations.
On September 15, 2020, before the market opened, Hindenburg published another report focusing on Nikola’s response, entitled “We View Nikola’s Response As a Tacit Admission of Securities Fraud[.]”
On this news, Nikola’s share price fell $2.96, or 8%, to close at $32.83 per share on September 15, 2020, thereby injuring investors further.
On September 20, 2020, Nikola announced that Milton was stepping down from the Company.
On this news, Nikola’s share price fell $6.61, or 19%, to close at $27.58 per share on September 21, 2020, thereby injuring investors further.
The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. (1) VectoIQ did not engage in proper due diligence regarding its merger with Nikola; (2) Nikola overstated its “in-house” design, manufacturing, and testing capabilities; (3) Nikola overstated its hydrogen production capabilities; (4) as a result, Nikola overstated its ability to lower the cost of hydrogen fuel; (5) Nikola founder and Executive Chairman, Trevor Milton, tweeted a misleading “test” video of the Company’s Nikola Two truck; (6) the work experience and background of key Nikola employees, including Mr. Milton, had been overstated and obfuscated; (7) Nikola did not have five Tre trucks completed; and (8) as a result, defendants’ public statements were materially false and/or misleading at all relevant times. According to the suit, these true details were disclosed by a market research firm.
If you purchased or otherwise acquired Nikola securities during the Class Period, you may move the Court no later than November 16, 2020to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to [email protected], or visit our website at www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
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SOURCE Law Offices of Howard G. Smith