4 Questions as Nikola Navigates Gov’t Probes, Investor Suits

Bracewell’s Matthew Nielsen recently spoke with Law360 reporter Linda Chiem about Nikola Corp. facing scrutiny from investors and the government after the electric truck maker’s founder and executive chairman, Trevor Milton, suddenly stepped down in the wake of a short-seller’s report accusing the company of overhyping its technology.

“Mr. Milton was an important part of this company, which is now starting to get legs under it substantially, so for him to step away so quickly … more likely indicates the board was concerned with some or all of the allegations or the negative press coverage was the last straw,” said Nielsen.

Milton abruptly resigned from the company’s board of directors roughly 10 days after Hindenburg Research accused Nikola of wildly exaggerating its ability to develop hydrogen-electric trucks and passing off third-party products as its own, among other things.

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