The U.S. Securities and Exchange Commission (SEC) has filed a motion to dismiss its case against Trevor Milton, founder and former CEO of electric and hydrogen truck maker Nikola, Reuters reported.
The SEC filed the civil case in 2021, with Milton accused of misleading investors by overstating Nikola’s technology, including its battery development and prototype vehicles. According to court filings, Milton has withdrawn all his claims against the SEC and will not seek legal costs.
This decision follows a series of legal battles for Milton. He resigned in 2020 after Hindenburg Research, a short-seller, accused Nikola of overstating its progress. In 2022, he was convicted of fraud related to misleading investors and sentenced to four years in prison.
Nikola has also faced difficulties since then. Earlier this year, the company filed for Chapter 11 bankruptcy and began preparing to sell its assets.
