VectoIQ $6.3M Nikola Merger Securities Settlement

Consumers who held VectoIQ Acquisition Corp. Class A common stock or public units between May 8 and June 3, 2020, may qualify to receive a cash payment from a class action settlement.

VectoIQ Acquisition Corp. agreed to pay $6.3 million to resolve a class action lawsuit alleging it made false and misleading statements and omissions in connection with its merger with Nikola Corp. The lawsuit claimed these misrepresentations affected shareholders’ rights and the value of their investments during the merger process.

Who are the class members?

The settlement class includes:

• All direct or indirect record and beneficial holders of VectoIQ Class A common stock, whether held as separate shares or as part of public units
• Those who held such shares between the close of business on May 8, 2020 (the record date), and June 3, 2020 (the closing date of the merger)
• Successors-in-interest who obtained shares by operation of law during this period
• Both registered shareholders and those who held shares through a broker or other nominee

How much is the VectoIQ payout?

Pro rata payment: The total settlement fund is $6,300,000. The settlement administrator will distribute the fund, minus deductions for taxes, notice and administration costs, attorneys’ fees and expenses, and any court-approved incentive awards to lead plaintiffs, to eligible class members.

The settlement administrator will determine each class member’s payment by calculating the number of eligible shares they held during the class period compared to the total number of eligible shares held by all class members. Those who held more shares will have a proportionally larger payment while those who held fewer will have a smaller payment.

The calculation is: Number of eligible shares held by the class member/total number of eligible shares held by all class members) × net settlement fund=each class member’s payment

No action needed to receive payment

Eligible class members do not need to submit a claim form to receive their payment. The settlement administrator will use Nikola's records, as well as those of the Depository Trust & Clearing Corp., to identify and pay eligible class members.

Payout options

• For those who held shares through a broker or in a “street name,” their broker will receive the payment and deposit it into their account.
• For those who held shares directly, they will receive the payment to their registered address or account.

$6.3 million settlement fund breakdown

The $6,300,000 settlement fund includes:

• Settlement administration costs: To be determined
• Attorneys’ fees and expenses: Up to $1,260,000
• Service awards to class representatives: To be determined
• Payments to eligible class members: Remainder of the fund

Important dates

• Fairness hearing: Nov. 20, 2025

When is the VectoIQ-Nikola merger litigation payout date?

The settlement administrator will issue payments to eligible class members after it resolves appeals and the court grants final approval of the settlement.

Why is there a class action settlement?

The class action lawsuit alleged VectoIQ Acquisition Corp. made false and misleading statements and omissions in its proxy materials related to the merger with Nikola Corp. The plaintiffs claimed these misrepresentations affected shareholders’ rights, including their ability to make informed decisions about redeeming their shares or voting on the merger.

The defendants denied any wrongdoing but agreed to settle to avoid the expense and uncertainty of continued litigation.

Sources

1. Class notice
2. Settlement agreement