LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Nikola Corporation (“Nikola” or the “Company”) (NASDAQ: NKLA) securities between February 24, 2022 and September 7, 2023, inclusive (the “Class Period”). Nikola investors have until December 12, 2023 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On June 23, 2023, a Nikola Tre battery-electric vehicle (“BEV”) caught fire and spread to four other trucks at the Company’s headquarters, prompting the Company to open an investigation into the incident. Additionally, Nikola posted a tweet regarding the fire, stating that “[f]oul play is suspected as a vehicle was seen in the area of the affected trucks just prior to the incident and an investigation is underway.” On this news, Nikola’s stock price fell $0.09, or 6.5%, to close at $1.29 per share on June 23, 2023, thereby injuring investors.
Then, on August 11, 2023, Nikola issued a recall of all 209 of its battery-electric trucks that it had delivered or built after the investigation of the fire found that a coolant leak inside a battery pack had been the cause. On this news, Nikola’s stock price fell $0.13, or 6.8%, to close at $1.82 per share on August 14, 2023.
Then, on September 4, 2023, another Nikola BEV truck caught fire at a warehouse in Arizona due to the same battery pack deficiencies that had caused the previous fire.
Then, on September 8, 2023, it was reported that yet another Nikola BEV truck had caught fire near the Company’s headquarters. Nikola stated that “there was a thermal incident with one engineering validation battery-electric truck near Nikola’s Phoenix headquarters. No one was injured. This pre-production truck was outside and undergoing battery fire investigation and testing.” On this news, Nikola’s stock price fell $0.16 per share, or 15.4%, to close at $0.88 per share on September 8, 2023, thereby injuring investors further.
The complaint filed in this class action 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. Specifically, Defendants failed to disclose to investors that: (1) the Company maintained deficient safety and structural controls related to its manufacturing of battery components; (2) the foregoing deficiencies rendered Nikola’s vehicles unsafe to operate and thus unusable, thereby raising the likelihood of a product recall; and (3) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased Nikola securities during the Class Period, you may move the Court no later than December 12, 2023 to ask the Court to appoint you as lead plaintiff. To be a member of the Class 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. 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, 2121 Avenue of the Stars, Suite 800, Los Angeles, California 90067 at 310-914-5007, by email to firstname.lastname@example.org, 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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