Law firm investigates Nikola over Hindenburg fraud claims

NEW YORK–(BUSINESS WIRE)–Rosen Law Firm, a global investor rights law firm, announces it is investigating potential securities claims on behalf of shareholders of Nikola Corporation (NASDAQ: NKLA) resulting from allegations that Nikola may have issued materially misleading business information to the investing public.

“Nikola: How to Parlay An Ocean of Lies Into a Partnership With the Largest Auto OEM in America[.]”

On September 10, 2020, the investment analyst Hindenburg Research issued a report on the Company entitled “Nikola: How to Parlay An Ocean of Lies Into a Partnership With the Largest Auto OEM in America[.]” The Hindenburg report alleges that Nikola “is an intricate fraud built on dozens of lies . . .” The report also alleges, among other things, that Nikola claims to “design[] all key components in house, but they appear to simply be buying or licensing them from third-parties. . . . [W]e found that Nikola actually buys inverters from a company called Cascadia. In a video showing off its ‘in-house’ inverters, Nikola concealed the Cascadia label with a piece of masking tape.” Hindenburg further asserts that Nikola has misled investors concerning its battery and hydrogen fuel cell claims, as well as its purported “multi-billion-dollar order book,” which Hindenburg asserts is “filled with fluff.”

On this news, Nikola’s stock price fell sharply during intraday trading on September 10, 2020, damaging investors.

Rosen Law Firm is preparing a class action lawsuit to recover losses suffered by Nikola’s investors.

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