Nikola mulls legal action against short-seller Hindenburg
(Reuters) – Nikola Corp said on Friday it could take legal action against short-seller Hindenburg Research, which accused the electric truck maker of being a “fraud” in a scathing report on Thursday.
“To be clear, this was not a research report and it is not accurate. This was a hit job for short sale profit driven by greed,” Nikola said in a statement.
The company also said it intended to bring the actions of the activist short-seller, along with evidence and documentation, to the attention of the U.S. Securities and Exchange Commission.
Hindenburg, which did not immediately respond to Reuters request for comment, had shorted the stock on Thursday and accused Nikola’s founder, Trevor Milton, of nepotism. The short-seller also said it had gathered enough evidence to show that Milton made false statements to form partnerships with large automakers.
“Nikola has been vetted by some of the world’s most credible companies and investors,” the company said on Thursday, accusing Hindenburg of manipulating the high-flying stock.
Shares of the company were down 1.5% at $37.00 in premarket trading.
(Reporting by Akanksha Rana and Munsif Vengattil in Bengaluru; Editing by Vinay Dwivedi)