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The founder and one-time executive chair of Nikola Corp. was freed on $100-million bail Thursday after pleading not guilty to charges that he lied about the electric- and hydrogen-powered truck start-up, duping novice investors including some financially struggling people looking for income during the pandemic.
Trevor Milton, 39, of Oakley, Utah, resigned from Nikola in September amid allegations of fraud. At the time, Milton said he would defend himself against accusations that the company made false claims about its vehicles, allegations that Nikola rejects.
In an indictment unsealed in Manhattan federal court, Milton was charged with securities and wire fraud.
The
The
Nasdaq Composite closed up 0.11%
So what else did the stock market do today? Here are some of the top stories.
What Did the Stock Market Do Today? Sell Nikola.
The saga for once-red-hot
Nikola (NASDAQ:
NKLA) continued on Thursday, with shares dropping 15%. The slump came after federal prosecutors filed securities fraud charges against Trevor Milton, the founder and former chief executive. Milton has been charged with misleading investors around the technological capabilities of Nikola.
There are several things for investors to note here. The first is that the prosecutors single out the impact on retail investors, particularly those that use the Robinhood platform. The second is that the charges include, among other things, messages from Milton on social media that overhyped Nikola.
PureCycle expects to open its Ironton, Ohio, plant in 2022.
Polypropylene recycler PureCycle Technologies Inc. said July 29 it will invest $440 million in a manufacturing facility in Augusta, Ga.
The Orlando, Fla.-based company, which uses solvents to recycle PP materials, said the investment will fund three production lines, each with a capacity to reprocess 130 million per year.
The announcement did not provide details on when the facility would come on line, but the company said it wants to reach 1 billion pounds of production capacity by 2025.
Company officials told the
Augusta Chronicle newspaper that they intend to begin construction early next year.
Thursday, 29 Jul 2021 10:15 PM MYT
CEO and founder of US Nikola Trevor Milton attends a news conference held to presents its new full-electric and hydrogen fuel-cell battery trucks in partnership with US Nikola, at an event in Turin, Italy, December 3, 2019. Reuters file pic
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NEW YORK, July 29 US prosecutors charged Nikola founder and former executive chairman Trevor Milton with defrauding investors over myriad claims about the company’s electric vehicles, according to an indictment released today.
Prosecutors with the US Attorney’s Office in New York charged Milton with three counts of fraud, according to the 49-page document.
Former Nikola CEO Trevor Milton charged with fraud in US
Federal prosecutors in New York have said the Nikola founder and CEO brazenly lied to investors about the the company s green vehicles to inflate market value and drive up his earnings. The SEC has also filed charges.
Nikola argues that the charges only affect its former CEO and founder Trevor Milton, though its stock took a pounding on Thursday too
US Federal Attorneys on Thursday announced that they had charged billionaire entrepreneur Trevor Milton with three counts of securities and wire fraud, each of which carries a maximum sentence of 20-25 years in prison.