Investor Alleges Nikola Board Was Blind To CEO's Fraud

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By Leslie Pappas (January 13, 2022, 7:43 PM EST) — A shareholder of battery-electric truck manufacturer Nikola Corp. sued 10 of its officers and directors in Delaware’s Court of Chancery for allegedly allowing the company’s founder to carry out a criminal fraud leading up to and following its $3.3 billion merger with VectoIQ Acquisition Corp.    

In a 140-page derivative complaint filed late Wednesday, shareholder Barbara Rhodes alleged that insiders of the Phoenix-based company stood by while its founder and former CEO and Executive Chairman Trevor Milton intentionally misled investors and overstated the company’s worth, artificially inflating the valuation of the company to as high as $28.77 billion post-merger.

Milton was…

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