$NKLA: SPAC 4.0 Lessons After Bankruptcy — $NKLA Investor Settlement Still Lingers

Court: D. Arizona

Case: 2:20-cv-01797

Nikola has agreed to pay a settlement to investors to resolve claims that it misled them about the functionality of its hydrogen-electric trucks, production timelines, and business prospects.

What is this settlement?

In 2020, Nikola was accused of falsely claiming its hydrogen-electric trucks were fully functional and exaggerating billions in pre-orders that were largely non-binding. As these claims surfaced, fell nearly 76%.

Following this, Nikola was sued by shareholders and has now decided to settle.

What can you do to recover your losses now?

While the details are still being finalised, you can already submit your claim and be notified of any further updates.

More than 100 companies are currently paying out settlements. Connect your brokerage account to automatically check which ones you may have missed.

Court: D. Arizona

Case: 2:20-cv-01797

Nikola has agreed to pay a settlement to investors who claim the company misled them about the functionality of its hydrogen-electric trucks, inflated production timelines, and exaggerated business prospects.

How the Story Unraveled

Back in 2020, Nikola promoted itself as a pioneer of hydrogen trucking, boasting billions in pre-orders and fully functional prototypes. But investigations revealed that many of these orders were non-binding and that its showcased trucks were far from operational.

As these revelations emerged, collapsed nearly 76%, erasing billions in market value and leaving shareholders questioning the company’s honesty.

Investor Pushback

Shareholders accused Nikola of false statements that propped up its stock price while hiding major operational setbacks. By late 2020, lawsuits followed, alleging that the company’s claims about its technology and demand pipeline were misleading.

A Path to Recovery

Now, Nikola has agreed to settle those lawsuits. While the exact terms are being finalized, investors can already submit claims to secure a share of the settlement. You can check the details and file yours here.

Court: D. Arizona

Case: 2:20-cv-01797

Nikola agreed to settle claims that it misled investors 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 in this case. Don’t miss your chance to get yours back.

Court: D. Arizona

Case: 2:20-cv-01797

Nikola has agreed to settle with investors after years of litigation tied to allegations that it misled the market about its hydrogen-electric trucks, pre-orders, and production capabilities. While the company once positioned itself as a Tesla rival, the settlement underscores how inflated promises eroded investor trust.

• Settlement Reached: Nikola resolved claims tied to fraud and misrepresentation.
• Stock Collapse: lost nearly 76% of its value after the truth surfaced.
• Fraud Allegations: Prototype trucks were shown as functional despite being inoperable.
• Leadership Fallout: Founder Trevor Milton resigned in Sept 2020 and was later indicted for securities fraud.
• Market Impact: Key partnerships unraveled, including a scaled-back GM deal.

Timeline Overview

• June 4, 2020: Nikola goes public via SPAC merger.
• Sept 10, 2020: Hindenburg Research exposes misrepresentations; plunges.
• Sept 21, 2020: Trevor Milton resigns amid fraud allegations.
• May 2, 2023: Investors file securities fraud lawsuit.
• March 2025: Nikola agrees to settle claims with investors.

Allegations Include

• Misrepresenting truck functionality.
• Inflating pre-orders with non-binding agreements.
• Exaggerating hydrogen production capabilities.

Investor Update

Nikola’s settlement resolves long-running litigation but highlights deep reputational scars. While it avoids further courtroom battles, uncertainty remains about whether Nikola can rebuild investor confidence and deliver on its clean transport promises.

You can check more information about HERE.

Court: D. Arizona

Case: 2:20-cv-01797

Nikola has agreed to pay a settlement to investors to resolve claims that it misled them about the functionality of its hydrogen-electric trucks, production timelines, and business prospects.

What is this settlement?

In 2020, Nikola was accused of falsely claiming its hydrogen-electric trucks were fully functional and exaggerating billions in pre-orders that were largely non-binding. As these claims surfaced, fell nearly 76%.

Following this, Nikola was sued by shareholders and has now decided to settle.

What can you do to recover your losses now?

While the details are still being finalised, you can already submit your claim and be notified of any further updates.

More than 100 companies are currently paying out settlements. Connect your brokerage account to automatically check which ones you may have missed.