ROSEN, A LEADING AND LONGSTANDING FIRM, Announces Investigation of Securities Claims Against Nikola Corporation - NKLA

Rhea-AI Summary

Rosen Law Firm announces an investigation into potential securities claims for Nikola Corporation (NASDAQ: NKLA) following allegations of misleading business information. A report by Hindenburg Research claims Nikola is a fraudulent entity, asserting it misrepresented its in-house capabilities and order book. Following this revelation, Nikola's stock fell 24%, closing at $32.13 on September 11, 2020. Rosen Law Firm is preparing a class action lawsuit to recover investor losses related to these allegations.

Positive

• The investigation could potentially lead to recovery of losses for investors.
• Rosen Law Firm has a strong track record in securities class actions.

Negative

• Stock price dropped 24% to $32.13 following misleading allegations.
• Accusations of fraud could damage investor trust and company reputation.

NEW YORK, Sept. 15, 2020 /PRNewswire/ -- Rosen Law Firm, a global investor rights law firm, announces it is investigating potential securities claims on behalf of shareholders of Nikola Corporation (NASDAQ: NKLA) resulting from allegations that Nikola may have issued materially misleading business information to the investing public.

On September 10, 2020, the investment analyst Hindenburg Research issued a report on the Company entitled "Nikola: How to Parlay An Ocean of Lies Into a Partnership With the Largest Auto OEM in America[.]" The Hindenburg report alleges that Nikola "is an intricate fraud built on dozens of lies . . ." The report also alleges, among other things, that Nikola claims to "design[] all key components in house, but they appear to simply be buying or licensing them from third-parties. . . . [W]e found that Nikola actually buys inverters from a company called Cascadia. In a video showing off its 'in-house' inverters, Nikola concealed the Cascadia label with a piece of masking tape." Hindenburg further asserts that Nikola has misled investors concerning its battery and hydrogen fuel cell claims, as well as its purported "multi-billion-dollar order book," which Hindenburg asserts is "filled with fluff."

On this news, shares of Nikola fell $10.24, or 24%, over the next two trading days, to close at $32.13 per share on September 11, 2020, on unusually heavy trading volume, damaging investors.

Rosen Law Firm is preparing a class action lawsuit to recover losses suffered by Nikola's investors. If you purchased shares of Nikola, please visit the firm's website at http://www.rosenlegal.com/cases-register-1943.html to join the class action. You may also contact Phillip Kim of Rosen Law Firm toll free at 866-767-3653 or via email at pkim@rosenlegal.com or cases@rosenlegal.com.

Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm or on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm.

Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 3 each year since 2013. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm's attorneys are ranked and recognized by numerous independent and respected sources. Rosen Law Firm has secured hundreds of millions of dollars for investors.

Attorney Advertising. Prior results do not guarantee a similar outcome.

Contact Information:

Laurence Rosen, Esq.
Phillip Kim, Esq.
The Rosen Law Firm, P.A.
275 Madison Avenue, 40^th Floor
New York, NY 10016
Tel: (212) 686-1060
Toll Free: (866) 767-3653
Fax: (212) 202-3827
lrosen@rosenlegal.com
pkim@rosenlegal.com
cases@rosenlegal.com
www.rosenlegal.com

 

View original content to download multimedia:http://www.prnewswire.com/news-releases/rosen-a-leading-and-longstanding-firm-announces-investigation-of-securities-claims-against-nikola-corporation--nkla-301130842.html

SOURCE Rosen Law Firm, P.A.

FAQ

What is the main issue concerning Nikola Corporation (NKLA) as of September 2020?

The main issue involves allegations from Hindenburg Research claiming that Nikola issued misleading business information, leading to a significant drop in stock prices.

What happened to Nikola's stock price after the Hindenburg report?

Nikola's stock price fell by 24% to $32.13 over two trading days following the allegations.

Who is investigating Nikola Corporation for potential securities claims?

Rosen Law Firm is investigating Nikola Corporation for potential securities claims on behalf of shareholders.

What did Hindenburg Research allege about Nikola's operations?

Hindenburg Research alleged that Nikola misrepresented its in-house capabilities and inflated its order book, among other claims.

How can investors participate in the class action lawsuit against Nikola?

Investors can join the class action lawsuit by visiting Rosen Law Firm's website.