Nikola's board of directors on Friday rejected a slate of nominees proposed by former Executive Chairman Trever Milton.
In December, Milton was convicted of one count of securities fraud and two counts of wire fraud and sentenced to four years in prison. He was found liable in an arbitration with Nikola in October, resulting in an award of $165 million plus interest, which includes a $125 million settlement with the Securities and Exchange Commission from 2021. The judgement remains unpaid, Nikola says.
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Milton, through M&M Residual, nominated five directors to Nikola's board on Jan. 26. They were Cole Cannon, Derek Johnson, Hans Peterson, Paul Southam and Dave Sparks. Nikola's board reviewed the slate and rejected it.
"The director nominees have no public company experience, add no skills or experience to the board, and indisputably lack the depth of experience that the current Nikola board members bring to the company," Nikola says in a news release. "Additionally, it is the company's belief the director nominees lack the expertise or knowledge needed to navigate the complexities of a zero-emissions trucking and energy infrastructure business."
Nikola says Milton has been separated from the company since September 2020, but the company "continues to suffer harm created by Mr. Milton's business decisions."
The current board, it says, are all reputable experts in their fields, which are also integral aspects of Nikola's business.
