Nikola agrees to $83M SEC settlement

Liquidation plan also includes $25.7M derivative settlement from insurance, defendants

The settlement is part of a broader Chapter 11 plan of liquidation for Nikola and its nine debtor affiliates, including Nikola Motor Co. LLC and Nikola Energy Co. LLC. (Photo: Jim Allen/FreightWaves)

The collapse of zero-emission truck developer Nikola Corporation has culminated in a liquidation plan that includes an $83 million settlement with the U.S. Securities and Exchange Commission.

Court filings on Friday outlined the agreement with federal regulators. The SEC claim is split into an “unsecured claim” of about $43 million and a “junior claim” of $40 million.

The settlement is part of a broader Chapter 11 plan of liquidation for Nikola and its nine debtor affiliates, including Nikola Motor Co. LLC and Nikola Energy Co. LLC.

The SEC claim is one of several legal challenges facing the company. Nikola has also been navigating a securities class-action lawsuit in Arizona, along with multiple derivative actions filed in Delaware and Arizona.

According to Friday’s filings, a separate settlement in those derivative actions will provide the company’s estates with net proceeds of about $25.7 million. The amount stems from insurance payouts and contributions from individual defendants named in the cases.

Background

Nikola’s financial and corporate struggles in the years leading up to its bankruptcy highlighted ongoing instability. The electric and hydrogen truck maker cited financial strain and supply chain issues before filing for bankruptcy earlier this year.

On June 24, 2024, the company enacted a 1-for-30 reverse stock split. In February 2025, Nasdaq notified Nikola that its common stock would be delisted.

Trading was suspended on Feb. 26, 2025, and the stock now trades on the Pink Market under the symbol NKLAQ. As of its bankruptcy petition date, the company reported about $97.7 million in total funded debt and financing lease obligations.

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Caleb Revill

Caleb Revill is a journalist, writer and lifelong learner working as a Junior Writer for Firecrown. When he isn't tackling breaking news, Caleb is on the lookout for fascinating feature stories. Every person has a story to tell, and Caleb wants to help share them! He can be contacted by email anytime at Caleb.Revill@firecrown.com.