Nikola Corporation (NASDAQ: NKLA) share has plummeted 0.88% after Jakubowitz Law disclosed that the securities fraud class action lawsuits have filed on behalf of shareholders of Nikola Corporation related to the merger deal with VectoIQ. Nikola has earlier announced that it has entered into a merger deal with VectoIQ Acquisition Corp.
The lawsuit claimed that Nikola has made a false statement and failed to disclose the necessary information. The lawsuit stated that Nikola exaggerates its design, manufacturing, and testing capabilities and the VectoIQ doesn’t engage in proper terms with its merger with Nikola. Furthermore, Nikola has also overstated its hydrogen production capabilities and its ability to lower the cost of hydrogen, the lawsuit claimed.
The filed complaint alleges that Nikola Corporation has overstated the work experience and background of key Nikola employees including Chief Trevor Milton. Not only this but also Former executive Trevor Milton has confused the public with the “test” video of the Company’s Nikola Two truck.
Nikola Corporation shares were trading down -0.88% at $23.57 during the trading session on Tuesday. Its share price went from a low point around $10.20 to briefly over $93.99 in the past 52 weeks. Nikola has moved up 131.08% from its 52-weeks low and moved down -74.92% from its 52-weeks high. NKLA market cap has remained high, hitting $8.88 billion at the time of writing.
Auto manufacturers company is already having a hard time after the report of the research group Hindenburg. Hindenburg Research claimed that Nikola has made a series of false statements and deceived the public with the video called ‘Nikola one in motion’. Its executive chairman Trevor Milton has submitted his resignation in response to the claims made by Hindenburg research.
Not only this but also the electric vehicle maker Tesla has earlier claimed that Nikola has copied its truck designs from Adriano Mudri, a director of design at the automotive company. Nikola has earlier announced that it has named Steve Shindler as the new independent director. Nikola Board of Directors has chosen Steve Shindler Chair of the Audit Committee.