Investors can contact the law firm at no cost to learn more about recovering their losses

LOS ANGELES, Oct. 24, 2023 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises Nikola Corporation (“Nikola” or the “Company”) (NASDAQ: NKLA) investors that a lawsuit filed on behalf of investors that purchased DermTech securities between February 24, 2022 and September 7, 2023, inclusive (the “Class Period”).

Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 844-767-8529 or email: [email protected], to discuss their legal rights, or click here to join the case via www.portnoylaw.com. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.

On June 23, 2023, a fire broke out in a Nikola Tre battery-electric vehicle (BEV) and subsequently spread to four other trucks located at the company's headquarters. This incident prompted an investigation by the company. Additionally, Nikola posted a tweet suggesting that foul play might be involved, as a vehicle had been observed in the vicinity just before the fire. An investigation was initiated as a result of this suspicion. In response to these developments, Nikola's stock price fell by $0.09, or 6.5%, closing at $1.29 per share on June 23, 2023, resulting in financial losses for investors.

Then, on August 11, 2023, Nikola announced a recall of all 209 of its battery-electric trucks that had been delivered or built after the fire incident. The investigation had determined that a coolant leak within a battery pack was the cause of the fire. Subsequently, Nikola's stock price dropped by $0.13, or 6.8%, closing at $1.82 per share on August 14, 2023.

On September 4, 2023, another Nikola BEV truck caught fire at a warehouse in Arizona, attributed to the same battery pack deficiencies that had caused the previous fire.

Then, on September 8, 2023, it was reported that yet another Nikola BEV truck had caught fire near the company's headquarters. Nikola issued a statement indicating that it was a thermal incident involving an engineering validation battery-electric truck near their Phoenix headquarters, with no reported injuries. The truck was undergoing battery fire investigation and testing. In response to this news, Nikola's stock price declined by $0.16 per share, or 15.4%, closing at $0.88 per share on September 8, 2023, leading to further financial losses for investors.

The class action complaint alleges that throughout the specified Class Period, the Defendants made materially false and/or misleading statements and failed to disclose crucial adverse information concerning the company's business, operations, and prospects. Specifically, the Defendants were accused of not revealing that (1) the company had significant safety and structural deficiencies in its battery component manufacturing, (2) these deficiencies made Nikola's vehicles unsafe and raised the risk of a product recall, and (3) as a result, the positive statements made by the Defendants about the company's business, operations, and prospects were misleading and lacked a reasonable basis.

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The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.

Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
[email protected]
310-692-8883
www.portnoylaw.com

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