A U.S. judge has ordered Trevor Milton, the founder of electric truck maker Nikola, to pay $167.7 million to the company following his conviction for fraud. U.S. District Judge Diane Humetewa in Phoenix upheld a November 2023 arbitration panel’s ruling, which held Milton responsible for misleading investors and the public about Nikola’s capabilities.
Milton was found liable for 97% of Nikola’s $125 million fine from settling a civil fraud case with the U.S. Securities and Exchange Commission, as well as $46.5 million in legal fees and expenses. The panel concluded that Milton’s false claims significantly contributed to the company’s financial penalties. “We look forward to collecting the award,” said Marc Kasowitz, a lawyer for Nikola.
Milton, who is free on bail pending an appeal, argued that the award was excessive and unfairly ignored the responsibility of other Nikola executives. However, the judge deemed the panel’s analysis plausible, assigning 3% fault to Nikola for not preventing Milton from misleading investors.
Milton was convicted in October 2022 on wire fraud and securities fraud charges, after prosecutors demonstrated that he had misrepresented Nikola’s technological developments, including falsely claiming progress on a non-functional semi-truck prototype.
