Former Nikola CEO Trevor Milton can be paying Nikola, the corporate he based, $167.7 million over his false and misdealing statements to the general public. The choice was made by U.S. District Decide Diane Humetewa in Phoenix on Monday.
Milton was convicted by jurors in Manhattan in October 2022 on two counts of wire fraud and two counts of securities fraud. Prosecutors on the time argued that Milton misled buyers about a few of Nikola’s initiatives, together with the hydrogen/electrical Badger pickup truck, which was not constructed, and the Nikola One, a supposed hydrogen semi truck that was rolled down a hill to indicate that it was in movement.
In her choice, Decide Humetewa upheld a divided arbitration panel’s November 2023 award within the electrical truck maker’s favor. As famous in a Reuters report, Decide Humetewa said that the panel had acted inside its authority in decoding a separation settlement between Milton and Nikola that the previous CEO signed when he stepped down from his chief government put up in September 2020.
The panel had concluded that Milton was liable to pay 97% of Nikola’s $125 million fantastic, which the electrical truck maker paid to settle a civil fraud case that was filed by the U.S. Securities and Alternate Fee (SEC). The panel additionally famous that Milton was liable to cowl nearly $46.5 million in authorized charges.
Milton, for his half, has argued that the award to Nikola was extreme. He additionally claimed that the award amounted to “tough justice” because the panel successfully ignored the “relative fault” of Nikola’s administrators, executives, and staff. Decide Humetewa, nevertheless, maintained that the panel’s evaluation—which assigned a 3% fault to Nikola for failing to cease Milton from deceptive buyers—was believable.
Nikola lawyer Marc Kasowitz said that the electrical truck maker was “gratified however not stunned” on the court docket’s choice contemplating the previous CEO’s sample of sharing false and deceptive public statements. Kasowitz famous that Nikola is wanting ahead to getting its award from its former CEO. “We look ahead to amassing the award,” the lawyer famous.
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