Nikola ($NKLA) Is Paying a Settlement to Investors — Here’s How to Get Your Share

Court: D. Arizona

Case: 2:20-cv-01797

Nikola Corp. has agreed to settle investor claims that it misled the market about the functionality of its hydrogen-electric trucks, production timelines, and business prospects. The $6.3 million settlement will be paid primarily from a directors and officers insurance policy held by VectoIQ, the SPAC that took Nikola public in a $3.3 billion merger in 2020.

Key Developments

• Settlement amount: $6.3 million, funded primarily by VectoIQ’s D&O insurance
• SPAC connection: VectoIQ merged with Nikola in June 2020, bringing the EV maker public
• Stock performance impact: fell nearly 76% from highs as allegations emerged
• Key allegations: Misrepresentation of vehicle capabilities, inflated pre-order numbers, and unrealistic hydrogen production claims

Timeline Overview

• June 4, 2020 – Nikola goes public via SPAC merger, touting revolutionary hydrogen-electric trucks
• August 2020 – Founder Trevor Milton claims breakthroughs in battery and hydrogen tech
• Sept 10, 2020 – Hindenburg Research alleges Nikola’s flagship truck was non-functional and video evidence was staged
• Sept 21, 2020 – Milton resigns as Executive Chairman; stock drops 19%
• May 2, 2023 – Investors file suit over misleading statements on technology and production
• March 2025 – Nikola agrees to settle investor claims

Allegations Include

• Presenting a non-functional prototype as operational
• Staging a promotional “In Motion” video with a truck rolling downhill
• Inflating pre-order figures with mostly non-binding agreements
• Claiming unrealistic hydrogen production costs to lure investment

Investor Update

The settlement resolves multiple years of litigation but does not require Nikola to admit wrongdoing. Investors impacted by the alleged misrepresentations between the SPAC merger and public revelations in late 2020 may be eligible for compensation from the settlement fund.

You can check more information about it and file for a payout HERE.

Court: D. Arizona

Case: 2:20-cv-01797

Nikola has finalized the transfer of its Phoenix Hydrogen Hub (PHH) project to Fortescue Future Industries (FFI), signaling a potential win for U.S. hydrogen infrastructure—but raising questions about Nikola’s future. The PHH, located near Buckeye, Arizona, was once a cornerstone of Nikola’s hydrogen ambitions. Now, Fortescue will take over development and funding, aiming to bring green hydrogen production online by mid-decade.

This move aligns with Nikola’s shift toward a capital-light strategy, allowing the company to focus on its Class 8 hydrogen fuel-cell trucks while leaning on partners like FFI and Nel ASA for infrastructure and electrolyzer capabilities. For Fortescue, the PHH presents an opportunity to expand its U.S. green energy footprint.

However, Nikola’s Chapter 11 filing in early 2025 complicates the picture. As the company moves to sell off assets—including its fueling network and hydrogen IP—the PHH transfer may keep the HYLA system alive, but raises doubts about execution and long-term viability.

While the Fortescue deal might safeguard parts of Nikola’s hydrogen strategy, the company’s future still hinges on the outcome of its asset sales and its ability to restructure.

On a related note, Nikola has also reached a settlement with investors over allegations that it misled them regarding the functionality of its hydrogen-electric trucks, production timelines, and overall business outlook. While final details of the settlement are still being worked out, affected investors can already file claims to get compensation.

Court: D. Arizona

Case: 2:20-cv-01797

Nikola has just agreed to settle a lawsuit from investors who claim the company hid information about the capabilities of its hydrogen-electric trucks, production timeline, and financial prospects. The deal, reached in March 2025, follows years of controversy, high-profile resignations, and a dramatic collapse in stock value.

What Really Happened With Nikola’s Hydrogen-Electric Dream

Nikola entered the scene in June 2020, claiming to have fully functional hydrogen-electric trucks and game-changing technology. Its founder, Trevor Milton, touted breakthroughs in battery systems and hydrogen production, claiming Nikola was miles ahead of the competition.

However, that September, Hindenburg Research published a report accusing Nikola of exaggerated claims. The most damaging allegation revealed that a promotional video showing the Nikola One truck “in motion” was, in reality, just the vehicle rolling downhill—with no propulsion system at all.

Just days after the report dropped, Trevor Milton resigned as Executive Chairman, and shares fell nearly 76%. Partnerships unraveled, including a high-profile deal with General Motors, and by 2021, Milton faced feder

al charges for securities fraud.

Investors Push Back—and Get Results

In May 2023, investors filed a lawsuit alleging Nikola misrepresented its technology, inflated its pre-order numbers with non-binding agreements, and overstated its ability to produce hydrogen cheaply. They argued these false claims led to significant financial losses as the truth came to light.

The Deal That Finally Closed the Chapter

Now, after three years, there’s a settlement on the table, offering some closure to affected shareholders. While the final terms are still being worked out, investors who lost money can already submit a claim. You can check the latest details and file yours here.

Court: D. Arizona

Case: 2:20-cv-01797

Nikola agreed to settle claims that it misled them about the functionality of its hydrogen-electric trucks, production timelines, and business prospects.

This settlement presents a great opportunity for investors to recover some of their losses. Here’s what you need to know to claim your payout.

Who is eligible?

All persons who purchased or otherwise acquired Nikola common stock during the period from June 4, 2020, through February 25, 2021, inclusive, and were damaged thereby​.

Do you have to sell securities to be eligible?

No, if you have purchased securities within the class period, you are eligible to participate. You can participate in the settlement and retain (or sell) your securities.

How long will it take to receive your payout?

The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.

How to claim your payout — and why it's important to act now?

The settlement will be distributed based on the number of claims filed, so submitting your claim early may increase your share of the payout.

In some cases, investors have received up to 200% of their losses from settlements in previous years.

More than 100 companies are currently paying out settlements. Connect your portfolio to automatically see which ones you might have missed — or file manually for this case. Don’t miss your chance to get yours back.

Court: D. Arizona

Case: 2:23-cv-02131

Nikola has requested the court to dismiss the lawsuit filed by investors. The court will determine whether the case proceeds.

What is this lawsuit about?

On September 8, 2023, it was reported that a fourth Nikola BEV truck caught fire near its headquarters, intensifying concerns about battery defects.

Following this, N dropped 15.38%, losing over $150 million in shareholder value.

Then, on October 13, 2023, shareholders filed a claim against Nikola.

What can you do to recover your losses now?

We’re keeping track of all updates and will notify N investors about potential recovery.

More than 600 companies are currently facing securities class action lawsuits, and over 100 are already paying settlements. Connect your brokerage account to automatically check which ones you may have missed.