Judge Refuses Nikola (NKLA) Founder's Bid to Dismiss/Move Fraud Case

US judge Edgardo Ramos on Monday, November 15, refused to dismiss a federal indictment charging Nikola (NASDAQ: NKLA) Corporation founder Trevor Milton with defrauding investors.

Milton claims that he should not have been indicted in New York for securities fraud and wire fraud because his alleged lies were in Arizona and Utah. Judge Ramos said Milton could be tried in New York if he traded Nikola stock on the Nasdaq and communicated false statements to that state.

Authorities said Milton used a blitz of social media posts, and TV and podcast interviews to drive up Nikola's stock price over nearly a year. Prosecutors said he falsely claimed that Nikola had built an electric- and hydrogen-powered pickup truck from the "ground up," developed batteries he knew it was buying elsewhere and was making progress on a truck prototype he knew did not work.

Lawyers have called the indictment "legally deficient" and plan to seek a dismissal on substantive grounds.

By Michael Elkins | [email protected]

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