Nikola Corporation (NASDAQ: NKLA )

This lawsuit is for anyone who acquired securities in Nikola Corporation (NASDAQ: NKLA) from February 24, 2022 through September 7, 2023.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company misled investors by telling investors that the Company had in place sufficient controls to manufacture safe batteries when the Company’s controls were lacking.

On June 23, 2023, a Nikola Tre battery-electric vehicle (“BEV”) caught fire and spread to four other trucks at the Company’s headquarters, prompting the Company to open an investigation into the investigation. Additionally, Nikola posted a tweet regarding the fire, stating that “[f]oul play is suspected as a vehicle was seen in the area of the affected trucks just prior to the incident and an investigation is underway.” On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Then, on August 11, 2023, Nikola issued a recall of all 209 of its battery-electric trucks that it had delivered or built after the investigation of the fire found that a coolant leak inside a battery pack had been the cause. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. Then, on September 4, 2023, another Nikola BEV truck caught fire at a warehouse in Arizona due to the same battery pack deficiencies that had caused the previous fire. Then, on September 8, 2023, it was reported that yet another Nikola BEV truck had caught fire near the Company’s headquarters. Nikola stated that “there was a thermal incident with one engineering validation battery-electric truck near Nikola’s Phoenix headquarters. No one was injured. This pre-production truck was outside and undergoing battery fire investigation and testing.” On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in Nikola Corporation (NASDAQ: NKLA) from February 24, 2022 through September 7, 2023 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.