Nikola Corp., Trevor Milton Settle Fraud Claims for $27 Million

Trevor Milton will pay $2.5 million to resolve fraud claims stemming from Nikola Corp.‘s blank-check merger in 2020, as part of a $27.45 million settlement approved Thursday.

The Delaware Chancery Court finalized a settlement already authorized by a bankruptcy court to end all derivative claims, including litigation in federal courts in Delaware and Arizona, against the electric-truck startup’s senior leaders and backers. The money will be paid back to the company that’s often been in turmoil since it went public through a deal with a special purpose acquisition company.

“Everything looks great,” Chancellor Kathaleen St. Jude McCormick said in ...