As Reuters reports, U.S. District Judge Diane Humetewa in Phoenix upheld an arbitration panel’s decision from November 2023, which required Milton to cover 97% of Nikola’s $125 million fine from a civil fraud settlement with the U.S. Securities and Exchange Commission (SEC).
The ruling also includes an additional $46.5 million in legal fees and expenses, bringing the total amount to nearly $168 million.
Milton argued that the award was excessive and claimed the arbitration panel ignored the involvement of other Nikola executives and employees. He described the decision as “rough justice,” according to Reuters. However, Judge Humetewa ruled that the panel acted within its authority, assigning only 3% fault to Nikola for failing to stop Milton from making false public statements.
Marc Kasowitz, a lawyer for Nikola, said the company was “gratified but not surprised” by the decision, given Milton’s “pattern of false and misleading public statements,” as quoted by Reuters. The company is now preparing to collect the awarded funds.
Milton was convicted in October 2022 on two counts of wire fraud and one count of securities fraud after prosecutors presented evidence that he had lied to investors about Nikola’s progress. According to Reuters, these lies included claims that Nikola had developed a pickup truck from the “ground up,” created its own batteries, and made significant advances on a semi-truck model called the “Nikola One,” which Milton knew did not function as described.
Although Milton is currently appealing his conviction and the December 2023 sentence, he remains free on bail.