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Nikola sets aside $125 million to settle with SEC

Electric truck developer Nikola Corp. is in talks with the U.S. Securities Exchange Commission to pay a $125 million civil penalty, part of an ongoing probe by the regulator into whether the company mislead investors, the company reported in its third-quarter earnings. Nikola would pay the settlement in installments, and had earmarked the funds in anticipation of a resolution, the company said in its third-quarter earnings results. Based on the advancement of discussions with the SEC in October 2021, Nikola “reserved a $125 million loss as its best estimate of the contingency in accrued liabilities as of September 30, 2021,” the company’s earnings report said.