Nikola Investors Reach Settlement in Fraud Suit Post Bankruptcy

Nikola Corp. and investors reached a settlement in their class action alleging the bankrupt electric-truck maker misled them about its technology and business prospects—but the case continues against its founder.

Other Nikola defendants and the investors anticipate formalizing an agreement and moving for the US District Court for the District of Arizona’s preliminary approval, they said in a joint notice filed Monday. The notice comes a month after Nikola filed for Chapter 11 bankruptcy, seeking to sell off assets, and causing the investors’ case against the company to be stayed.

• There’s been no settlement with former chief executive officer ...