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National Investor Fraud Law Firm KlaymanToskes Investigates FINRA Arbitration Claims on Behalf of Nikola Investors

in Light of the Electric Car Maker’s $125M Settlement with the SEC to Resolve Fraud Charges

BOCA RATON, FLORIDA, UNITES STATES, January 18, 2022 / -- National investor fraud law firm KlaymanToskes (“KT”) is investigating FINRA arbitration claims on behalf of investors who were recommended to purchase Nikola (NASDAQ: NKLA) through full-service brokerage firms in light of the electric car maker’s agreement with the SEC to pay $125M to resolve fraud charges.

According to the SEC’s Order, Nikola misled investors through misrepresentations by its CEO and later Executive Chairman, Trevor R. Milton. Before Nikola produced a single commercial product or generated revenues from truck or hydrogen fuel sales, Milton conducted a media blitz for the purpose of inflating and maintaining Nikola’s stock price in which he misled investors about Nikola’s technological advancements, in-house production capabilities, reservation book, financial outlook, and other business operations.

Nikola is a publicly traded zero emissions transportation system provider that was created through a special purpose acquisition corporation (“SPAC”), which is a shell-type entity formed with the goal of raising capital through an initial public offering to acquire an existing private company. According to securities attorney Lawrence L. Klayman, Esq., “SPACs pose great risks to investors such as lack of disclosure regarding business operations and finances, high fees, conflicts of interest, and fraud. Brokerage firms are required to perform due diligence prior to recommending SPACs and their resulting companies like Nikola to their customers, and the failure to do so may result in liability.”

The sole purpose of this release is to investigate the sales practices of brokerage firms and their financial advisors in connection with Nikola. Investors who held accounts at full-service brokerage firms with Nikola losses exceeding $100,000, and who have information related to the handling of their investments, are encouraged to contact Lawrence L. Klayman, Esq., at (561) 542-5131, and download our Special Investor Report.

About KlaymanToskes:

KT is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. KT has recovered more than $225 million for investors in FINRA arbitrations. KT has office locations in California, Florida, New York, and Puerto Rico.

Lawrence L. Klayman, Esq.
+1 561-542-5131

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