US SEC to dismiss case against former Nikola CEO

Core Viewpoint - The U.S. Securities and Exchange Commission (SEC) has moved to dismiss its case against Trevor Milton, the founder and former CEO of Nikola, which aimed to produce electric and hydrogen-powered trucks [1][2]. Group 1: Legal Developments - The SEC filed the case in 2021, accusing Milton of falsely claiming that Nikola had developed an electric and hydrogen-powered pickup from scratch and had in-house battery development while actually sourcing them externally [1]. - The SEC believes that dismissing the case is appropriate, and Milton has waived his right to seek legal costs and released all claims against the agency [2]. Group 2: Company Background and Challenges - Nikola's stock experienced a significant decline after Hindenburg Research accused the company of misleading investors regarding its technological advancements, including a video that falsely depicted its electric truck [3]. - Milton resigned shortly after the Hindenburg report and was later convicted in October 2022 on one count of securities fraud and two counts of wire fraud, resulting in a four-year prison sentence [4]. - In February 2023, Nikola filed for Chapter 11 bankruptcy and announced plans to sell its assets, marking a significant downturn for the company [4].