Nikola SEC Fair Fund, $48.8 Million Proposed for Investors After $125 Million Penalty and Bankruptcy

The U.S. Securities and Exchange Commission (SEC) has proposed distributing $48.8 million to investors harmed by Nikola Corporation’s misleading statements. You cannot file a claim yet. The SEC is taking public comments on the proposed plan until November 12, 2026. If the Commission approves it, the proposed claims period is 180 days from the initial notice mailing. The proposed eligible purchase window is March 3 to September 18, 2020.

The money comes from a $125 million civil penalty the SEC imposed in December 2021. Only $48.8 million has been collected so far, after Nikola’s Chapter 11 bankruptcy. The remaining $76.2 million has not been collected.

Not legal, tax or investment advice. AllAboutLawyer.com provides general information. If you hold or held Nikola or VectoIQ stock, read the SEC’s official documents linked below and consider consulting a securities attorney or tax adviser.

Quick Facts

Detail	Verified information
Company	Nikola Corporation
SEC proceeding	In the Matter of Nikola Corporation, Administrative Proceeding File No. 3-20687
Proposed plan notice	Exchange Act Release No. 34-106645, October 13, 2026
Original SEC penalty	$125,000,000 (order dated December 21, 2021)
Collected to date	$48,800,000
Not yet collected	$76,200,000
Bankruptcy case	In re Nikola Corporation, No. 25-10258 (Bankr. D. Del.), filed February 19, 2025
Eligible securities (proposed)	Nikola and VectoIQ Acquisition Corp. common stock, plus certain converted Legacy Nikola shares and shares from exercised eligible warrants
Eligible purchase period (proposed)	March 3, 2020 through September 18, 2020, inclusive
Minimum individual payment (proposed)	$25
Public comment deadline	November 12, 2026 (comments are not claims)
Claim form	Not yet available
Claims deadline	Not set; proposed as 180 days after the initial notice is mailed
Payment date	Not announced
Type of recovery	SEC Fair Fund, not a class action settlement

Why Did the SEC Order Nikola to Pay $125 Million?

On December 21, 2021, the SEC announced a settled administrative order against Nikola. The agency found the company made materially misleading statements to investors from at least March 2020 through September 2020. The statements concerned Nikola’s technology, its ability to produce components in-house, its reservation book and its financial outlook. The SEC also found deficiencies in the company’s disclosure controls and procedures.

The SEC found violations of:

• Section 17(a) of the Securities Act of 1933
• Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5
• Exchange Act Rule 13a-15(a) (disclosure controls)

Nikola agreed to pay a $125 million civil penalty in installments. Under Section 308(a) of the Sarbanes-Oxley Act of 2002, the SEC can place collected penalties into a Fair Fund for distribution to harmed investors. The SEC’s Fair Fund procedures are in its Rules on Fair Fund and Disgorgement Plans (17 C.F.R. §§ 201.1100–201.1106), which provide for public notice of a proposed plan and a comment period before the Commission decides whether to approve it.

What is a Fair Fund? It is a government-run distribution of collected enforcement money. It is different from a private securities class action, where shareholders sue the company for damages and a court approves a settlement.

Related background, kept separate: Nikola founder Trevor Milton was criminally convicted of securities and wire fraud in 2022 and later received a presidential pardon in 2025, according to public reporting. That criminal matter is separate from the SEC’s corporate order and from this Fair Fund. Do not assume the pardon changes the Fair Fund process.

Official source: SEC Nikola Fair Fund page

Why Did the Fund Fall From $125 Million to $48.8 Million?

The penalty order was not formally reduced. $48.8 million is what the SEC has collected so far.

Nikola filed for Chapter 11 on February 19, 2025, which complicated collection of the unpaid balance. The SEC says its claim against the bankruptcy estate was resolved in a settlement on August 29, 2025. Under it, the estate agreed to pay the SEC $4 million when the approved bankruptcy plan became effective, and the SEC received that payment on or about December 15, 2025.

Component	Amount
Original SEC civil penalty	$125,000,000
Collected before the bankruptcy-related payment	$44,800,000
Payment from Nikola’s bankruptcy estate	$4,000,000
Total collected for the Fair Fund	$48,800,000
Not collected	$76,200,000

The SEC says any additional money it collects under the original order will be added to the Fair Fund. It does not promise further recovery.

$48.8 million is not the final amount investors will split. The proposed plan allows deductions for administrative costs, taxes, fees and expenses, and adds interest earned on the fund.

Related article: Supreme Court Rejects 9/11 Plea Deal Appeal, Khalid Sheikh Mohammed Can Still Face the Death Penalty

Bankruptcy Claim vs. SEC Fair Fund Claim

These are different processes. A creditor claim in Nikola’s bankruptcy case does not get you money from the SEC Fair Fund, and the Fair Fund is not paid through the bankruptcy distribution to creditors. Shareholders generally need to follow the SEC’s Fair Fund claims process, once it opens.

Who Could Qualify?

Under the proposed plan, you must have purchased or acquired eligible stock between March 3, 2020 and September 18, 2020 and have a recognized loss under the plan’s formula. The window covers the period around Nikola’s June 2020 merger with the special-purpose acquisition company VectoIQ and the market reaction in September 2020 (including the widely reported September 10, 2020 short-seller report).

Which Securities May Qualify?

• Nikola Corporation common stock (NKLA)
• VectoIQ Acquisition Corp. common stock (VTIQ), including shares later converted into Nikola shares
• Qualifying Legacy Nikola common or preferred stock converted into Nikola shares
• Common shares acquired through exercising eligible warrants

Excluded: warrants themselves, options and certain other derivatives, and persons identified as excluded in the plan (such as Nikola and certain insiders or related parties). Confirm exact exclusions in the plan text.

Do You Have to Show a Loss?

Yes. Buying during the window is necessary but not enough. The administrator calculates a recognized loss from your purchases, sales and holdings. If you sold before the plan’s first corrective-disclosure date (September 9, 2020, close of trading), your recognized loss may be zero under the proposed formula.

How Would Payments Be Calculated?

The proposed plan uses an inflation-based method to estimate the part of a loss tied to the misconduct.

Purchase date	Proposed inflation per share
March 3 to September 9, 2020	$15.62
September 10, 2020	$11.13
September 11 to September 18, 2020	$5.57
September 19, 2020 and later	$0.00

These are not payout amounts. They are inputs to a formula that also uses your purchase price, sale price and holding period. For shares held through December 18, 2020, the plan uses a reference price of $21.50. Verify all figures against the official plan before relying on them.

• Not everyone gets the same amount. Each claimant’s recognized loss is calculated individually.
• Pro rata reduction: If total recognized losses exceed the available fund, payments are reduced proportionally.
• $25 minimum: Calculated payments under $25 would not be paid, and that money would be reallocated to others.

Can You File a Claim Now?

No. As of October 19, 2026, the plan is proposed and not approved. The SEC published its notice on October 13, 2026, with a 30-day comment period ending November 12, 2026.

November 12 is a comment deadline, not a claim deadline. A public comment does not register you for payment.

If the plan is approved, the proposal calls for the fund administrator to:

1. Prepare the approved notice and claim form.
2. Identify likely claimants from trading and brokerage records.
3. Set up a dedicated website and call center.
4. Accept claims for 180 days after the initial notice is mailed.
5. Review claims, give claimants a chance to fix deficiencies or dispute determinations, and then seek SEC authority to pay.

What Should Former Nikola and VectoIQ Investors Do Now?

1. Pull your brokerage records for NKLA or VTIQ purchases and sales between March 3 and September 18, 2020, including trade confirmations and any records of shares converted in the merger.
2. Record dates, quantities and prices for every purchase, sale and any shares still held.
3. Watch the official SEC Fair Fund page for plan approval and claim instructions.
4. Don’t pay anyone to “reserve” your claim. A legitimate SEC Fair Fund does not charge claimants a fee to file. Be wary of unsolicited emails, calls or websites; go only to the SEC page or the administrator’s site linked from it.
5. Consider commenting if you have a substantive concern about the plan (see below).
6. Plan for taxes. A Fair Fund payment may have tax consequences. Ask a tax adviser how to treat it.

Special situations (confirm with the plan and administrator): shares held through a broker or nominee, institutional or retirement accounts, estates and deceased holders, and investors outside the U.S. may face different documentation steps.

How to Comment on the Plan Before November 12, 2026

Under the SEC’s notice, interested persons may submit written comments through the SEC Office of the Secretary, its online comment form, or by email to [email protected]. Include Administrative Proceeding File No. 3-20687. Comments are public, so include only information you are comfortable sharing. Questions about the proceeding can go to the SEC Office of Distributions at [email protected].

Official source: SEC Notice of Proposed Plan of Distribution, Release No. 34-106645

What Happens Next?

1. The SEC considers public comments and decides whether to approve the plan (possibly with changes).
2. If approved, the administrator mails notices and opens the claims process.
3. Claimants have the proposed 180-day period to file.
4. The administrator reviews claims and prepares a payee list.
5. The SEC authorizes disbursement.

No approval date, claims deadline or payment date has been announced. Any later collections on the remaining penalty could be added to the fund, but that isn’t guaranteed.

Key Dates

Date	Event
March 3, 2020	Start of proposed eligible purchase period
September 18, 2020	End of proposed eligible purchase period
December 21, 2021	SEC order imposing the $125M penalty and establishing the Fair Fund
February 19, 2025	Nikola files for Chapter 11
August 29, 2025	SEC and Nikola’s bankruptcy estate settle their disputed claim
About December 15, 2025	SEC receives the $4M estate payment
October 13, 2026	SEC publishes the proposed plan and notice
November 12, 2026	Public comment deadline
Not yet set	Claims deadline (proposed: 180 days after initial notice mailing)
Not yet set	Payment date

Related AllAboutLawyer Coverage

These are separate investor matters with their own terms and statuses:

• Compass Minerals $12M SEC Fair Fund Settlement: another SEC Fair Fund
• Arrival SA’s $13.3M SPAC Fraud Settlement: a bankrupt EV company and a private securities settlement
• ChargePoint $11 Million Securities Settlement
• DiDi Global $740 Million Securities Class Action Settlement

Frequently Asked Questions

Is Nikola’s $125 million SEC penalty now only $48.8 million?

The penalty order is still $125 million. The SEC has collected $48.8 million so far and placed it in the Fair Fund. The other $76.2 million has not been collected.

Can I file a claim for the $48.8 million now?

No. The plan is proposed, not approved. No claim form or deadline exists yet.

Who qualifies?

Investors who bought or acquired eligible Nikola or VectoIQ common stock (or qualifying converted or warrant-exercised shares) between March 3 and September 18, 2020, and have a recognized loss under the plan.

Do I get $15.62 per share?

No. $15.62 is an inflation input for the loss formula for shares bought March 3 to September 9, 2020. It is not a guaranteed per-share payment.

When is the claim deadline?

Not set. The proposed plan says 180 days after the initial notice mailing, if the SEC approves the plan.

Is November 12, 2026 the claim deadline?

No. It is the deadline for public comments on the proposed plan.

Will every eligible investor be paid?

No. You must file a valid claim and have a recognized loss. Payments under $25 are not paid under the proposal, and payments may be reduced pro rata.

Does the bankruptcy cancel the SEC fund?

No. The $48.8 million is held in the Fair Fund for distribution if the plan is approved.

Is this the same as a class action settlement?

No. It is an SEC Fair Fund. Separate private lawsuits may exist, but this article doesn’t cover them and the Fair Fund doesn’t depend on them.

Do I have to pay to file a claim?

Official SEC Fair Fund claims don’t charge claimants a fee. Treat anyone asking for payment to “secure” your share as a possible scam.

Does Trevor Milton’s criminal case or pardon affect my claim?

The Fair Fund is based on the SEC’s order against Nikola Corporation. Milton’s criminal case is a separate matter.

Will the payment be taxable?

It may be. Ask a tax adviser about your situation.

Official Sources

1. SEC: In the Matter of Nikola Corporation, Fair Fund page (File No. 3-20687)
2. SEC: Proposed Plan of Distribution (October 13, 2026)
3. SEC: Notice of Proposed Plan of Distribution and Opportunity for Comment, Release No. 34-106645
4. Nikola bankruptcy case information (No. 25-10258)
5. Legal references: Securities Act § 17(a) (15 U.S.C. § 77q(a)); Exchange Act § 10(b) (15 U.S.C. § 78j(b)) and Rule 10b-5 (17 C.F.R. § 240.10b-5); Rule 13a-15 (17 C.F.R. § 240.13a-15); Sarbanes-Oxley Act § 308(a) (15 U.S.C. § 7246(a)); SEC Fair Fund Rules (17 C.F.R. §§ 201.1100–201.1106).

Corrections: If you find an error, contact AllAboutLawyer.com and we will review and update this page.

Researched and written by Israr Ahmad, Legal Content Researcher.

AllAboutLawyer.com provides general legal information, not legal, tax or investment advice. It is not a law firm and does not represent Nikola, the SEC or any investor in this proceeding.