The U.S. Securities and Exchange Commission (SEC) has moved to dismiss its case against Trevor Milton, the founder and former CEO of electric and hydrogen truck maker Nikola.
The case, filed in 2021, accused Milton of misleading investors by falsely claiming Nikola had independently developed an electric and hydrogen-powered pickup and its own battery technology, when the company had actually sourced components externally, News.Az reports, citing Reuters.
In a filing with the U.S. District Court for the Southern District of New York, the SEC said it believes dropping the case is appropriate. Milton, who was pardoned earlier this year by U.S. President Donald Trump, agreed to waive his right to recover legal costs and released any claims against the agency.
Milton’s downfall began in 2020 after short-seller Hindenburg Research accused Nikola of exaggerating its technological progress, including a video that showed a truck rolling downhill while presented as self-propelled. He resigned later that year.
In 2022, Milton was convicted on securities and wire fraud charges for misleading investors, and in 2023 he received a four-year prison sentence. Meanwhile, Nikola filed for Chapter 11 bankruptcy in February 2025, announcing plans to sell off its assets.
