NEW YORK, Nov. 3, 2023 /PRNewswire/ — Pomerantz LLP announces that a class action lawsuit has been filed against Nikola Corporation (“Nikola” or the “Company”) (NASDAQ: NKLA) and certain officers. The class action, filed in the United States District Court for the District of Arizona, and docketed under 23-cv-02131, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Nikola securities between February 24, 2022 and September 7, 2023, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are a shareholder who purchased or otherwise acquired Nikola securities during the Class Period, you have until December 12, 2023 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
[Click here for information about joining the class action]
Nikola purports to operate as an integrated zero-emissions transportation systems provider that designs and manufactures battery-electric and hydrogen-electric vehicles, electric vehicle drivetrains, vehicle components, energy storage systems, and hydrogen fueling station infrastructure. One of the Company’s primary products is the Nikola Tre Class 8 truck, a battery-electric vehicle (“BEV”) which purportedly “integrates [the Company’s] electrified propulsion, technology, controls and infotainment[]” and “is expected to be one of the first zero emission Class 8 trucks to market.”
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company maintained deficient safety and structural controls related to its manufacturing of battery components; (ii) the foregoing deficiencies rendered Nikola’s vehicles unsafe to operate and thus unusable, thereby raising the likelihood of a product recall; and (iii) as a result, the Company’s public statements were materially false and misleading at all relevant times.
One June 23, 2023, a Nikola Tre BEV caught fire at the Company’s headquarters, with the fire ultimately spreading to four other trucks and prompting Nikola to open an investigation into the incident. That same morning, Nikola posted a tweet in response to the fire, stating, in relevant part, 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.”
Following news of the fire, despite Nikola’s suggestion of foul play, the Company’s stock price fell $0.09 per share, or 6.52%, to close at $1.29 per share on June 23, 2023.
Thereafter, on August 11, 2023, in contrast with the Company’s earlier suggestion of foul play, Nikola issued a recall of all 209 battery-electric trucks that it had delivered or built to date after the investigation found that a coolant leak inside a battery pack had caused the fire.
Following news of the recall, Nikola’s stock price fell $0.13 per share, or 6.67%, to close at $1.82 per share on August 14, 2023.
Then, on September 4, 2023, as a result of the same battery pack deficiencies that caused the June 23, 2023 fire, a third Nikola BEV truck caught fire at a warehouse in Tempe, Arizona.
Finally, on September 8, 2023, it was reported that a fourth Nikola BEV truck caught fire near the Company’s headquarters. In a statement sent to Electrek.com, a news website focused on electric transportation and sustainable energy, the Company stated, in relevant part, 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, Nikola’s stock price fell $0.16 per share, or 15.38%, to close at $0.88 per share on September 8, 2023.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
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CONTACT:
Robert S. Willoughby
Pomerantz LLP
[email protected]
888-476-6529 ext. 7980
SOURCE Pomerantz LLP
