Nikola Investors Get Class Status in Electric Truck Fraud Suit

Nikola Corp. investors earned class status in their suit alleging that the electric vehicle company misled them about the prowess of its fuel cell technology and truck business prospects as it went public through a blank-check company merger, a federal judge ruled.

Nikola stock was trading in an efficient market at the time and investors were entitled to a fraud-on-the-market presumption of reliance, US District Court for the District of Arizona Judge Steven Paul Logan said, dashing the company’s arguments against class certification. And shareholders can use testimony from economist Zachary Nye about market trading that the defendants wanted ...