LOS ANGELES, Oct. 5, 2020 /PRNewswire/ — Glancy Prongay & Murray LLP (“GPM”) 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 purchased or otherwise acquired Nikola Corporation (“Nikola” or “the Company”) (NASDAQ: NKLA) securities between March 3, 2020 and September 20, 2020, inclusive (the “Class Period”).
If you suffered a loss on your Nikola investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at https://www.glancylaw.com/cases/nikola-corporation/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at [email protected] to learn more about your rights.
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 (“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 $10.24, or 24%, over two consecutive trading sessions to close at $32.13 per share on September 11, 2020, thereby injuring investors.
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, the Company’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, the Company’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 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) 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 of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
If you purchased or otherwise acquired Nikola securities during the Class Period, you may move the Court no later than November 16, 2020 to request appointment as lead plaintiff in this putative class action lawsuit. 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 the pending class action lawsuit, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to [email protected], or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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SOURCE Glancy Prongay & Murray LLP