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Short-seller Hindenburg Research stated in a scathing report earlier this month that it had gathered sufficient proof to indicate that Nikola and Milton made false claims about firm’s proprietary know-how to type partnerships with massive automakers.
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After founder Trevor Milton stepped down as government chairman, shares of Nikola Corp fell 34%
Shares of electrical-truck maker Nikola Corp tumbled 34% on Monday after founder Trevor Milton stepped down as government chairman following a public squabble with a brief-vendor over allegations of nepotism and fraud. The embattled firm named Stephen Girsky, former vice chairman of General Motors Co and a member of Nikola’s board, as chairman, efficient instantly.
Short-seller Hindenburg Research stated in a scathing report earlier this month that it had gathered sufficient proof to indicate that Nikola and Milton made false claims about firm’s proprietary know-how to type partnerships with massive automakers.
“The focus should be on the Company and its world-changing mission, not me. So I made the difficult decision to approach the Board and volunteer to step aside as Executive Chairman,” stated Milton, who owns about 20% of the corporate.
“I intend to defend myself against false allegations leveled against me by outside detractors,” he stated in a tweet.
Hindenburg additionally alleged that Milton appointed his brother, Travis, to steer a unit within the firm regardless of not having any substantial expertise associated to the sector.
Nikola has rejected all of the accusations and threatened to take authorized motion towards Hindenburg. The U.S. Department of Justice and the U.S. Securities and Exchange Commission have been probing the claims made within the report, in line with studies final week.
Hindenburg’s report got here quickly after Nikola sealed a partnership with GM, which took an 11% stake within the firm for about $2 billion and agreed to work collectively to make electrical pickup vehicles to tackle Tesla Inc.
The U.S. Securities and Exchange Commission (SEC) is probing Nikola to evaluate the deserves of quick-vendor Hindenburg’s allegations, in line with a Bloomberg News report final week.
Nikola has stated it has briefed the SEC on considerations pertaining to the report.
(This story has not been edited by NDTV employees and is auto-generated from a syndicated feed.)
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