November 21, 2025
Delaware Chancellor Kathaleen St. J. McCormick granted final approval Thursday to a pair of settlements totaling more than $33 million, including more than $1.8 million in fees and expenses, resolving years of shareholder litigation tied to Nikola Corp.’s fraud-shadowed SPAC merger.
Chancellor McCormick noted that the court faced unusual pressure to act quickly because the settlement was woven into Nikola’s Chapter 11 process and required prompt approval. As counsel summarized the terms, Chancellor McCormick responded that the settlement was “far more than fair” as she granted approval.
The settlements resolve overlapping derivative and class actions filed after Nikola’s 2020 merger with special purpose acquisition company VectoIQ Acquisition Corp. Investors alleged that insiders allowed founder and former chairman of Nikola Trevor Milton to mislead the market with false claims about Nikola’s ability to produce hydrogen and battery electric trucks, inflating the company’s valuation ahead of the SPAC deal.
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Richard A. Speirs of Cohen Milstein Sellers & Toll PLLC, representing the plaintiffs, said the deal was the product of years of litigation, “over 2 million pages” of discovery, extensive mediation, and coordination with Nikola’s bankruptcy estate. Chancellor McCormick credited the multiparty negotiations.
Speirs said more than 4,900 hours were devoted to the Nikola litigation, spanning years of investigation, motion practice, discovery and mediation.
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The plaintiffs are represented by Peter B. Andrews, Craig J. Springer and David M. Sborz of Andrews & Springer LLC, Blake A. Bennett of Cooch & Taylor PA, Julie Goldsmith Reiser, Richard A. Speirs and Benjamin F. Jackson of Cohen Milstein Sellers & Toll PLLC, Frank J. Johnson, Brett M. Middleton and Jonathan M. Scott of Johnson Fistel LLP and Gregory E. Del Gaizo of Robbins LLP.