Nikola Corp. Fraud Case Advances as Judge Cuts Back Court Claims

Architects of Nikola Corp.‘s blank-check merger succeeded Tuesday in narrowing fraud litigation challenging the transaction, but the case is still moving forward against the electric vehicle startup’s disgraced founder and other corporate leaders.

Chancellor Kathaleen St. J. McCormick issued a complex ruling for Delaware’s Chancery Court, where she serves as chief judge, addressing more than a dozen shareholder claims. The lawsuit targets current and former board members at Nikola and the shell entity it combined with to go public, including ex-CEO Trevor Milton, who was convicted on federal fraud charges in 2022.

The allegations, if true, show that ...