The U.S. Securities and Exchange Commission said on Tuesday it settled fraud charges against Hyzon Motors of misleading investors.
The company, a maker of hydrogen fuel cell electric vehicles, was charged with misleading investors about its business relationships and vehicle sales before and after a July 2021 merger with a publicly traded special purpose acquisition company, or SPAC.
The SEC also charged Craig Knight, Hyzon’s former CEO, and Max Holthausen, former managing director of Hyzon’s European subsidiary, for their roles in the fraudulent scheme, it said in a statement.
The company also confirmed the settlement and said it was “pleased to put this chapter behind us.”
Without admitting or denying the allegations in the SEC’s complaint, Hyzon agreed to pay a civil penalty of USD 25 million in three installments, according to the settlement.
In the second quarter of 2023, Hyzon accrued a USD 22 million loss contingency, based upon its management’s assessment of the SEC investigation.
Knight and Mark Gordon, Hyzon’s former chief financial officer, each reimbursed Hyzon USD 252,000 and USD 122,500, respectively, for bonuses they received during the twelve-month period after Hyzon misstated its financial statements, the SEC said.
