Nikola Corporation (NKLA)
Investors that purchased the Company’s securities and have suffered a loss, please fill in transaction information below, or email to info@portnoylaw.com.
There is no cost or obligation associated with submitting your information. If you are a shareholder who suffered a loss, please submit your contact information and purchase information to participate in the putative class action.
We also encourage you to contact Lesley F. Portnoy of The Portnoy Law Firm, at 310.692.8883, to discuss your rights free of charge. You can also reach us through the firm’s website at www.portnoylaw.com, or by email at info@portnoylaw.com.
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CONTACT:
Portnoy Law Firm
Lesley F. Portnoy, Esq.,
www.portnoylaw.com
Office: 310.692.8883
1800 Century Park East, Suite 600
Los Angeles, CA 90067
info@portnoylaw.com
On June 23, 2023, a fire broke out in a Nikola Tre battery-electric vehicle (BEV) and subsequently spread to four other trucks located at the company’s headquarters. This incident prompted an investigation by the company. Additionally, Nikola posted a tweet suggesting that foul play might be involved, as a vehicle had been observed in the vicinity just before the fire. An investigation was initiated as a result of this suspicion. In response to these developments, Nikola’s stock price fell by $0.09, or 6.5%, closing at $1.29 per share on June 23, 2023, resulting in financial losses for investors.
Then, on August 11, 2023, Nikola announced a recall of all 209 of its battery-electric trucks that had been delivered or built after the fire incident. The investigation had determined that a coolant leak within a battery pack was the cause of the fire. Subsequently, Nikola’s stock price dropped by $0.13, or 6.8%, closing at $1.82 per share on August 14, 2023.
On September 4, 2023, another Nikola BEV truck caught fire at a warehouse in Arizona, attributed to the same battery pack deficiencies that had caused the previous fire.
Then, on September 8, 2023, it was reported that yet another Nikola BEV truck had caught fire near the company’s headquarters. Nikola issued a statement indicating that it was a thermal incident involving an engineering validation battery-electric truck near their Phoenix headquarters, with no reported injuries. The truck was undergoing battery fire investigation and testing. In response to this news, Nikola’s stock price declined by $0.16 per share, or 15.4%, closing at $0.88 per share on September 8, 2023, leading to further financial losses for investors.
The class action complaint alleges that throughout the specified Class Period, the Defendants made materially false and/or misleading statements and failed to disclose crucial adverse information concerning the company’s business, operations, and prospects. Specifically, the Defendants were accused of not revealing that (1) the company had significant safety and structural deficiencies in its battery component manufacturing, (2) these deficiencies made Nikola’s vehicles unsafe and raised the risk of a product recall, and (3) as a result, the positive statements made by the Defendants about the company’s business, operations, and prospects were misleading and lacked a reasonable basis.
