Nikola Corporation
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of Arizona on behalf of those who acquired Nikola Corporation (“Nikola” or the “Company”) (NASDAQ: NKLA) securities during the period from February 24, 2022 through September 7, 2023, inclusive (the “Class Period”). Investors have until December 12, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Nikola operates as an integrated zero-emissions transportation systems provider that, inter alia, designs and manufactures battery-electric and hydrogen-electric vehicles and vehicle parts. One of the Company’s primary products is the Nikola Tre Class 8 truck, a battery-electric vehicle (“BEV”) which purports to integrate Nikola’s electrified propulsion, technology, and controls, and is expected to be one of the first zero emission Class 8 trucks to market.
One June 23, 2023, a Nikola Tre BEV caught fire at the Company’s headquarters, with the fire ultimately spreading to four other trucks and prompting Nikola to open an investigation into the incident. That same morning, Nikola posted a tweet in response to the fire, stating that the Company suspects foul play. On this news, the price of Nikola shares declined by $0.09 per share, or approximately 6.52%, from $1.38 per share to close at $1.29 on June 23, 2023.
On August 11, 2023, in contrast with the Company’s earlier suggestion of foul play, Nikola issued a recall of all 209 BEV trucks that it had delivered or built to date after the Company’s investigation found that a coolant leak inside a battery pack had caused the fire. On this news, the price of Nikola shares declined by $0.13 per share, or approximately 6.67%, from $1.95 per share to close at $1.82 on August 14, 2023.
On September 4, 2023, as a result of the same battery pack deficiencies that caused the June 23, 2023 fire, a third Nikola BEV truck caught fire at a warehouse in Tempe, Arizona. Then, on September 8, 2023, it was reported that a fourth Nikola BEV truck caught fire near the Company’s headquarters. In a statement sent to Electrek.com, Nikola confirmed the fire at their Phoenix, Arizona headquarters, stating that the pre-production truck was outside, no one was injured, and the Company is conducting a battery fire investigation. On this news, the price of Nikola shares declined by $0.16 per share, or approximately 15.38%, from $1.04 per share to close at $0.88 on September 8, 2023.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) Nikola maintained deficient safety and structural controls related to its manufacturing of battery components; (ii) the foregoing deficiencies rendered the Company’s vehicles unsafe to operate and thus unusable, thereby raising the likelihood of a product recall; and (iii) as a result, the Company’s public statements were materially false and misleading at all relevant times.
Nikola operates as an integrated zero-emissions transportation systems provider that, inter alia, designs and manufactures battery-electric and hydrogen-electric vehicles and vehicle parts. One of the Company’s primary products is the Nikola Tre Class 8 truck, a battery-electric vehicle (“BEV”) which purports to integrate Nikola’s electrified propulsion, technology, and controls, and is expected to be one of the first zero emission Class 8 trucks to market.
One June 23, 2023, a Nikola Tre BEV caught fire at the Company’s headquarters, with the fire ultimately spreading to four other trucks and prompting Nikola to open an investigation into the incident. That same morning, Nikola posted a tweet in response to the fire, stating that the Company suspects foul play. On this news, the price of Nikola shares declined by $0.09 per share, or approximately 6.52%, from $1.38 per share to close at $1.29 on June 23, 2023.
On August 11, 2023, in contrast with the Company’s earlier suggestion of foul play, Nikola issued a recall of all 209 BEV trucks that it had delivered or built to date after the Company’s investigation found that a coolant leak inside a battery pack had caused the fire. On this news, the price of Nikola shares declined by $0.13 per share, or approximately 6.67%, from $1.95 per share to close at $1.82 on August 14, 2023.
On September 4, 2023, as a result of the same battery pack deficiencies that caused the June 23, 2023 fire, a third Nikola BEV truck caught fire at a warehouse in Tempe, Arizona. Then, on September 8, 2023, it was reported that a fourth Nikola BEV truck caught fire near the Company’s headquarters. In a statement sent to Electrek.com, Nikola confirmed the fire at their Phoenix, Arizona headquarters, stating that the pre-production truck was outside, no one was injured, and the Company is conducting a battery fire investigation. On this news, the price of Nikola shares declined by $0.16 per share, or approximately 15.38%, from $1.04 per share to close at $0.88 on September 8, 2023.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) Nikola maintained deficient safety and structural controls related to its manufacturing of battery components; (ii) the foregoing deficiencies rendered the Company’s vehicles unsafe to operate and thus unusable, thereby raising the likelihood of a product recall; and (iii) as a result, the Company’s public statements were materially false and misleading at all relevant times.