NIKOLA LIMITED – Twersky Law Group, a highly regarded and reputable law firm based in New York, wishes to inform investors about a significant development in the form of a class action lawsuit against Nikola Corporation (“Nikola” or “the Company”) (NASDAQ: NKLA) and certain officers of the company. This lawsuit has been filed on behalf of all individuals and entities that purchased or otherwise acquired Nikola securities February 24, 2022 through September 9, 2023 (the “Class Period”). Investors who acquired Nikola securities during this defined timeframe are strongly encouraged to participate in this case by contacting atara@twerskylawgroup.com. The deadline to file a motion for appointment of lead plaintiff is December 12, 2023.
The fundamental objective of this class action lawsuit is to recover for the benefit of investors who purchased Nikola securities during the Class Period, the losses they sustained as a consequence of the misleading statements made by Defendants in violation of the federal securities laws.
ALLEGATIONS AGAINST NIKOLA
Nikola purports to operate as an integrated zero-emissions transportation systems provider that designs and manufactures battery-electric and hydrogen-electric vehicles, electric vehicle drivetrains, vehicle components, energy storage systems, and hydrogen fueling station infrastructure. One of the Company’s primary products is the Nikola Tre Class 8 truck, a battery-electric vehicle (“BEV”) that purportedly “integrates [the Company’s] electrified propulsion, technology, controls and infotainment[]” and “is expected to be one of the first zero-emission Class 8 trucks to market.” The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company maintained deficient safety and structural controls related to its manufacturing of battery components; (ii) the foregoing deficiencies rendered Nikola’s vehicles unsafe to operate and thus unusable, thereby raising the likelihood of a product recall; and (iii) as a result, the Company’s public statements were materially false and misleading at all relevant times. One June 23, 2023, a Nikola Tre BEV caught fire at the Company’s headquarters, with the fire ultimately spreading to four other trucks and prompting Nikola to open an investigation into the incident. That same morning, Nikola posted a tweet in response to the fire, stating, in relevant part, 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.” Following news of the fire, despite Nikola’s suggestion of foul play, the Company’s stock price fell $0.09 per share, or 6.52%, to close at $1.29 per share on June 23, 2023. Thereafter, on August 11, 2023, in contrast with the Company’s earlier suggestion of foul play, Nikola issued a recall of all 209 battery-electric trucks that it had delivered or built to date after the investigation found that a coolant leak inside a battery pack had caused the fire. Following news of the recall, Nikola’s stock price fell $0.13 per share, or 6.67%, to close at $1.82 per share on August 14, 2023. Then, on September 4, 2023, as a result of the same battery pack deficiencies that caused the June 23, 2023 fire, a third Nikola BEV truck caught fire at a warehouse in Tempe, Arizona. Finally, on September 8, 2023, it was reported that a fourth Nikola BEV truck caught fire near the Company’s headquarters. In a statement sent to Electrek.com, a news website focused on electric transportation and sustainable energy, the Company stated, in relevant part, 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 15.38%, to close at $0.88 per share on September 8, 2023.
ABOUT NIKOLA
- Nikola Corporation is an American company that focuses on the development of hydrogen and electric-powered vehicles, with an emphasis on hydrogen fuel cell technology for heavy-duty trucks. The company was founded in 2014 and initially gained attention as a potential competitor in the electric and hydrogen-powered truck industry. Nikola aimed to produce a range of sustainable transport solutions, including the Nikola One, a hydrogen-electric semi-truck.
- However, Nikola has faced various controversies and challenges, including allegations of fraudulent practices and misleading statements. In 2020, a report from a financial research firm accused the company of deceptive practices, which led to investigations by regulatory authorities and a significant decline in its stock value. Subsequently, the company’s founder and former executive chairman, Trevor Milton, stepped down.
JOIN THIS CASE
It is important to note that a class action lawsuit has already been filed in connection with these allegations. Therefore, for those individuals who suffered financial losses in their investments in Nikola during the Class Period, there is a limited opportunity to seek appointment as a lead plaintiff. This process entails requesting the Court to designate them as the primary representative on behalf of the entire class. The deadline for submitting such a request is December 12, 2023. It is important to emphasize that while becoming a lead plaintiff can offer certain advantages, participation in the recovery process and the potential for financial compensation does not mandate serving as a lead plaintiff.
Twersky Law Group, a distinguished legal firm renowned for its attorneys expertise in handling securities fraud class actions and shareholder derivative suits, who have a long-standing track record of successfully recovering significant sums of money for investors nationwide. With an unwavering commitment to seeking justice for their clients, the firm’s attorneys are resolute in pursuing fair compensation on behalf of those affected by alleged securities law violations. As with any legal matter, it is essential to understand that this announcement constitutes attorney advertising. Past case outcomes and results achieved do not guarantee similar outcomes in this particular case.
Investors who believe they may qualify as potential class members in the class action lawsuit against Nikola are strongly encouraged to reach out directly to the firm for further information and assistance. The knowledgeable legal professionals at Twersky Law Group stand ready to provide guidance and support to investors seeking to protect their rights and pursue the recovery they deserve.
