Tag: SEC

By on December 21, 2021

Nikola Corp. has agreed to pay $125 million to settle charges levied by The Securities and Exchange Commission (SEC) that the company actively defrauded investors by providing misleading information about its technical prowess, production capabilities, and general prospects.

The settlement comes after a salvo of civil and criminal charges were launched against Nikola’s founder Trevor Milton, who got in trouble for convincing investors that the prospective automaker had fully functional prototypes boasting technologies other companies would have envied when that wasn’t actually the case. Milton was chided for using social media to promote false claims about the business, with his pleading not guilty to fraud charges brought up by the Department of Justice in July.  (Read More…)

By on December 6, 2021

Lucid Group Inc. has been subpoenaed by the U.S. Securities and Exchange Commission (SEC) which is on the prowl for any documentation relating to its merging with a special purpose acquisition company (SPAC). Known colloquially as “blank-check firms,” these organizations literally exist to be combined with existing companies as a way to pump the stock and spur investments.

But they’ve gotten a lot of negative attention following a glut of EV startups garnering impressively high valuations based on little more than a business proposal. Those seeking an example need look no further than Nikola Corp, which was outed as having grossly overpromised on its technological capabilities and production acumen after raking it in on the stock market. As a result, financial regulators have become increasingly skeptical of SPACs and want to make sure everything going on with Lucid is above board.  (Read More…)

By on November 24, 2021

Nikola Corp. founder, Trevor Milton, has been offloading stock ever since he was indicted for making misleading and/or blatantly false statements about the company. The formal charges were issued in July, piggybacking off a critically damning report from 2020 that alleged Nikola had grotesquely misrepresented its production capabilities and falsified a video where it showed an inoperable prototype vehicle working as if it was fully functional. The paper caught the attention of both the Securities and Exchange Commission (SEC) as well as the Department of Justice (DOJ) — resulting in Milton stepping down as CEO and twelve months of investigative probes(Read More…)

By on July 29, 2021

The U.S. Department of Justice has indicted Nikola founder Trevor Milton over claims made to investors that could have been intentionally misleading. Though anybody tracking the story from the beginning already knows the corporate plot surrounding the company’s trucks has more holes than a deli platter comprised entirely of baby swiss. (Read More…)

By on April 30, 2021

We began April talking about Volkswagen’s April Fool’s Day prank that went awry, and we end the month back on the same topic. Circle of life!

We’re back on that topic because the Securities and Exchange Commission is investigating what happened.

(Read More…)

By on February 26, 2021

The outside firm Nikola hired to conduct the internal investigation looking into the validity of claims made by ousted founder Trevor Milton has reached a conclusion. Milton does appear to have been fabricating the status of the company’s technology and how far along its prototypes were. But Nikola wasn’t helping and ended up being implicated in a few falsehoods of its own.

Some wealthy individual lying to a sea of people for the sake of making money is hardly news, however. The entire world runs on politicians and business people going back on promises made months earlier and clarifying statements that never seem to illuminate anything. What makes Milton’s offense so bad is that he seems to have used the power of lying to mislead investors who might have otherwise made money. Nikola shares never truly recovered from the exposé published by Hindenburg Research as part of its plan to short the company, and those who never bothered to question the legitimacy of its technical claims before investing are suddenly very interested in knowing everything about the business.

(Read More…)

By on October 27, 2020

Today’s Rare Ride was the ultimate display of Germanic automotive wealth in the early Nineties. Always rarer than its sedan brother, the SEC was the S-Class with two doors and no pillars.

Let’s check out a hardtop from the arguable height of modern Mercedes-Benz engineering.

(Read More…)

By on September 14, 2020

Following a scathing report from Hindenburg Research that called Nikola a fraudulent company largely dependent upon the blind excitement surrounding electric vehicles, the accused has finally issued a response. On Monday, Nikola released a bulleted letter suggesting the report was the act of an opportunistic short seller that was attempting to take advantage of the period immediately proceeding the announced partnership with General Motors. While Hindenburg didn’t exactly hide that aspect of itself in its own report, it frames the business as only profiting off companies that weren’t above board to begin with. It also received support from Citron Research, which said it likewise thought Nikola needed to be scoped out by the Securities and Exchange Commission (SEC) and promised to help pay for half of any legal fees incurred as a result of Hindenburg’s reporting.

Meanwhile, Nikola was crafting its rebuttal after founder Trevor Milton explained he had to wait on a comprehensive response because he was already in contact with the SEC. As his constant Twitter updates started to become counterproductive, this was likely a wise decision. The response dropped on Monday, clearing a handful of items up while making a bunch of other aspects seem even more suspect. (Read More…)

By on June 18, 2020

The Securities and Exchange Commission has urged the recently bankrupted Hertz to halt the sale of stock. The rental agency had hoped to raise half a billion on the sale but repeatedly warned that would-be buyers were gambling, as the stock may soon be worthless.

Bizarrely, this hasn’t discouraged investors from glomming onto shares of bankrupt and near-bankrupt companies. Despite the global economy supposedly hurdling into a recession and mass unemployment, Wall Street hasn’t signaled that anything is amiss.

Still, the SEC has grown concerned with the trend and decided to address them with Hertz, according to a recent filing. Trading of Hertz Global Holdings Inc. was halted on Thursday, placing investors in a holding pattern as everyone speculates whether the bankrupt car renter will have to revise its plan to raise cash by selling new shares.  (Read More…)

By on December 27, 2019

BMW Group revealed this week that it is under investigation by the U.S. Securities and Exchange Commission following a report of a probe related to the company’s sales practices. A spokesperson for the automaker confirmed the situation on Thursday, saying BMW was in full cooperation with authorities and their investigation.

The probe was reported on earlier in the week by The Wall Street Journal, which had insider sources alleging the company had manipulated sales figures. The SEC is specifically worried that BMW had been engaging in “sales punching” by allowing dealers to register cars moved onto lots as sold to artificially boost sales figures.  (Read More…)

By on September 30, 2019

Hauntings normally don’t cost the homeowner $40 million, but that’s what Fiat Chrysler faces after over-reporting monthly vehicle sales for a period of several years. Late last week, the U.S. Securities and Exchange Commission hit FCA with a fine for its now-corrected sales reporting practices, claiming the automaker misled investors.

FCA’s sales reporting trickery is also behind a lawsuit filed against the company by one of its top executives. (Read More…)

By on September 23, 2019

On Monday, the Securities and Exchange Commission announced that Nissan and its former chairman, Carlos Ghosn, are on the hook for $16 million in fines. The SEC alleges that the automaker failed to disclose millions of dollars in compensation that the former Renault-Nissan-Mitsubishi Alliance chairman was due to receive via a 2004 board decision that allowed him to decide the compensation of high-ranking executives — including himself.

Reports from Bloomberg stipulate that Ghosn and subordinates managed to withhold over $90 million in compensation from shareholders since 2009, with the ousted CEO attempting to put another $50 million away for his retirement allowance.  (Read More…)

By on June 6, 2019

FCA

There’s drama in Auburn Hills tonight. And, by the sounds of it, for many days leading up to this point. Reid Bigland, Fiat Chrysler’s U.S. sales boss and the appropriately imposing head of the cash-cow Ram brand, has filed a whistleblower lawsuit against his employer.

Bigland, who joined Chrysler in 2006 and soon found himself heading up Maserati, Alfa Romeo, and Dodge, plus serving as CEO of FCA Canada (a role he maintains), claims the company’s HQ is awash in bad blood. The exec says he’s being punished for not taking the fall in a federal investigation into FCA’s sales reporting. (Read More…)

By on April 5, 2019

Elon Musk + Tesla Model S Circa 2011

Treating Tesla CEO Elon Musk and the U.S. Securities and Exchange Commission like a pair of squabbling kindergarteners, a federal judge handed down a message to both on Thursday. Basically, figure out your shit.

The two sides remain locked in a battle sparked by a true product of our time — tweets. The SEC claims Musk’s recent use of Twitter violates the conditions set out in the settlement reached between the regulator and Tesla last year, a settlement resulting from a lawsuit over … tweets.

“Put your reasonableness pants on,” Judge Alison Nathan told the two parties in a New York City federal court yesterday. (Read More…)

By on March 19, 2019

Elon Musk + Tesla Model S Circa 2011

There’s no shortage of distractions coming out of Tesla to take the focus away from a smoldering legal battle between the automaker and its favorite foe, the U.S. Securities and Exchange Commission.

The SEC, however, isn’t easily led astray by retail store turmoil and the promise of a crossover with no home. The regulator has stepped up its efforts to see Tesla CEO Elon Musk held in contempt of court for violating an earlier settlement agreement. At the root of the two contempt orders, the latest filed on Monday, is the source of all evil in today’s world: social media.  (Read More…)

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