Del. Chancery Pauses Nikola Corp. Class Action

By Leslie A. Pappas (June 1, 2022, 7:03 PM EDT) — Electric truck company Nikola Corp. and its criminally charged former CEO convinced the Delaware Chancery Court on Wednesday to put a stockholder derivative suit on hold pending the resolution of related legal actions in New York and Arizona.

In a bench ruling Wednesday, Chancellor Kathaleen St. J. McCormick granted a short stay of the consolidated class action to make time for a criminal trial in July against the company’s former CEO and Executive Chairman Trevor Milton in the Southern District of New York and let a motion to dismiss a putative federal securities class action in Arizona play out.

The chancellor…

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