LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz continues its investigation of Nikola Corporation ("Nikola" or the "Company") (NASDAQ: NKLA) on behalf of investors concerning the Company’s possible violations of federal securities laws.
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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, the Company’s share price fell $4.80, or 11%, to close at $37.57 per share on September 10, 2020, thereby injuring investors.
Then, on September 11, 2020, Nikola issued a statement denying the allegations and threatening legal action against Hindenburg Research. However, the same day, Citron Research supported Hindenburg’s claims, stating: “Congrats to Hindenburg for exposing what appears to be a total fraud with $NKLA. Citron will cover half of all legal expenses.”
On this news, the Company’s share price fell $5.44, or nearly 15%, to close at $32.13 per share on September 11, 2020, thereby injuring investors further.
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If you purchased Nikola securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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