Nikola Corp (NASDAQ:NKLA) shares surged 14% to $1.08 in late-morning trading on Tuesday after a regulatory filing revealed that the electric and hydrogen-powered heavy truck maker was awarded $165 million in an arbitration proceeding with its founder and former executive chairman Trevor Milton.
Nikola had sought reimbursement from Milton for costs and damages related to actions that were part of government and regulatory investigations, including a December 2021 US Securities and Exchange Commission (SEC) settlement and associated civil penalty.
Milton resigned from Nikola in 2020 and was found guilty on three of four counts of fraud in October 2022, after claiming the company had already produced zero-emission 18-wheel trucks.
Nikola paid $125 million in 2021 to settle a civil case against it by the SEC without admitting any wrongdoing.
Shares of Nikola have plunged 51% year to date.
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