Fraud claims, DOJ probe and sexual abuse allegations cloud $2B deal between GM and Nikola truck startup
What seemed like a simple matter of crossing the t’s and dotting the i’s has turned into a protracted challenge for General Motors and Nikola, after negotiations to pair up and produce new zero-emissions trucks have been extended.
The $2 billion deal, announced Sept. 9, was billed as a “partnership made in heaven,” according to Nikola founder and then-chairman Trevor Milton, during a media call with GM CEO Mary Barra. But the Phoenix-based startup has since been hammered by claims of fraud, with a Securities and Exchange Commission probe now underway. Allegations surfaced this week of sexual abuse by Milton, who stepped down as chairman last week. Nikola’s stock has plunged to barely a quarter of what it was worth when the company went public last June.
Talks expected to wrap up today could now run through Dec. 3, at which time the proposed deal “may be terminated by either