Nikola Founder And Convicted Felon Trevor Milton Files Lawsuit Against Present Chief Legal Officer, Directors Alleging Malpractice

Trevor Milton, the convicted founder of EV truck maker Nikola Corp NKLA, said on Friday that he filed a multi-billion derivative lawsuit against the company’s present chief legal officer Britton Worthen, and its directors.

What Happened: Milton announced the lawsuit via the social media platform LinkedIn. “Just filed a multi billion dollar derivative malpractice lawsuit against Nikola motor company’s directors and chief legal officer Britton Worthen. GET READY!” Milton wrote.

 In September 2020, short-seller Hindenburg published a report labeling the electric car maker as an "intricate fraud." Hindenburg specifically pointed out a video released by Nikola titled "Nikola One in Motion," alleging that the truck was towed to the top of a hill and released instead of being driven at high speed. 

Milton alleged on Friday that the said video of the truck rolling down the hills was “actually written, approved, and ordered distributed” by Worthen and not himself. “The truth finally comes out!” he wrote while adding that a whistleblower will testify that Worthen directed him to post the video instead of Milton.

The former CEO further added that he has found testimony and evidence that the company destroyed employee statements and evidence that could prove his innocence on allegations of fraud and also instructed witnesses to make up stories.

“Then provided false information to the SEC and DOJ to get me indicted,” he alleged.

Milton was sentenced to four years in prison last year after a jury decided that he lied to investors about Nikola’s technology capabilities.

Nikola Vs. Milton: In April, Milton alleged that the board at Nikola is “too compromised with rampant misconduct and potential fraud.” He also opined that the board must fire current CEO Steve Girsky, Worthen, and those involved in their decisions, as failing to do so might make the company go bankrupt by year-end.

Nikola Board Chairman Steven M Shindler in a letter to stockholders in April termed Milton as the “criminally convicted former Executive Chairman” and said that the team had to work hard to overcome the “reputational, financial, and operational damage created by Mr. Milton's improper conduct from more than three years ago in his role as Founder and Executive Chairman.”

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