This week Yahoo Finance is watching for developments in two federal cases against former executives of public companies. One case involves Nikola (NKLA) founder Trevor Milton, who's accused of lying to investors about his electric truck startup's technology. The other accuses Uber's (UBER) one-time security chief, Joe Sullivan, of covering up a 2016 data breach.
We're also anticipating the Congressional testimony of Twitter whistleblower Peiter "Mudge" Zatko, the company's former head of security, who is scheduled to answer questions on Tuesday posed by members of the Senate Judiciary Committee.
Nikola founder faces federal fraud trial
Nikola founder Trevor Milton is scheduled to stand trial this week in a federal fraud case accusing him of illegally deceiving retail investors in his electric- and hydrogen-fueled truck company.
The company made its public debut in June 2020 in a reverse merger with VectoIQ Acquisition, a special purpose acquisition company (SPAC). New York prosecutors filed a complaint against Milton in July alleging the founder’s “ubiquitous" presences across social media and TV deceived investors about the status of the company. Prosecutors allege that he used these platforms to spread numerous false claims to artificially inflate Nikola's stock price.
"Before Nikola had produced a single commercial product or had any revenues from truck or fuel sales, Milton embarked on a relentless public relations blitz aimed at a class of investors he called...
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