Former Nikola Executive Trevor Milton Ordered to Pay $165M in Arbitration Outcome

Payment is reimbursement for costs and damages associated with a 2021 SEC investigation and settlement where Milton was found guilty on three counts of fraud related to misleading investor claims about Nikola's capabilities.

Former Nikola executive chairman Trevor Milton has been ordered to repay $165 million to the firm under an arbitration ruling tied to a 2021 Securities and Exchange Commission investigation.
The arbitration was sought by Nikola for reimbursement of costs and damages resulting from government and regulatory probes, including a 2021 SEC settlement and associated civil penalty.
The fraudulent actions that led to these costs were primarily misleading claims made by Milton about the company’s technological and production capabilities, including a failed demonstration of an autonomous electric vehicle.
In addition to the arbitration settlement, Nikola also aims to seek reimbursement for attorney fees associated with the case.
Despite the fraud scandal, Nikola's share price increased on news of the arbitration verdict, suggesting investor confidence in the company's efforts to resolve past controversies.