NKLA Stock: Berger Montague Expands Investigation into Alleged Securities Fraud Claims Against Nikola Corporation (NASDAQ: NKLA); Lead Plaintiff Deadline is November 16, 2020
PHILADELPHIA, Oct. 19, 2020 – Berger Montague is expanding its investigation into potential securities fraud claims against Nikola Corp. (“Nikola” or the “Company”). The investigation now includes investors who purchased Nikola securities (NASDAQ: NKLA) between March 3, 2020 and October 6, 2020 (the “Class Period”).
If you purchased Nikola securities during the Class Period, have questions concerning your rights or interests, or would like to discuss Berger Montague’s investigation, please contact attorneys Andrew Abramowitz at email@example.com or (215) 875-3015, or Donnell Much at firstname.lastname@example.org or (215) 875-4667, or contact us at www.bergermontague.com/nikola.
The lawsuit alleges that throughout the Class Period, Defendants failed to inform investors that VectoIQ Acquisition Corp., a special purpose acquisition entity, did not engage in proper due diligence regarding its June 2020 merger with Nikola, a zero-emissions transportation company, and that Nikola overstated its in-house design, manufacturing, and testing capabilities, as well as its hydrogen production capabilities.
Investors allegedly began to learn the truth on September 10, 2020, when Hindenburg Research published a highly critical report in which, citing extensive evidence that incriminated both the Company and its CEO Trevor Milton, Hindenburg accused Nikola of falsely representing its partnerships, products, and the capabilities of its test trucks, and labeled the Company “an intricate fraud built on dozens of lies.”
On September 14, 2020, Bloomberg reported that the Securities and Exchange Commission is investigating Nikola on the basis of Hindenburg’s accusations. The following day, The Wall Street Journal reported that the Department of Justice was joining the SEC in its investigation.
Also on September 15, Hindenburg published another report in which it asserted that Nikola’s purported failure to provide a substantive response to its earlier report was “a tacit admission of securities fraud.” Finally, on September 20, Nikola’s founder and executive chairman Trevor Milton resigned.
These events have had a dramatic adverse impact on the price of Nikola’s shares, falling from $50.05 per share on September 8 to a closing price of $27.58 on September 21.
If you purchased Nikola shares during the Class Period, you may seek Court appointment as lead plaintiff to represent other injured investors in a class action. The lead plaintiff appointment deadline is November 16, 2020. You do not need to be a lead plaintiff to share in any potential Class recovery.
Whistleblowers: Persons with non-public information regarding Nikola Corporation are encouraged to confidentially assist Berger Montague’s investigation or take advantage of the SEC Whistleblower program. Under this program, whistleblowers who provide original information may receive rewards totaling up to thirty percent (30%) of recoveries obtained by the SEC. For more information, contact us.
Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for five decades and serves as lead counsel in courts throughout the United States.