Nikola Drops After Disclosing Legal Issues

Nikola says that the company and founder Trevor Milton received grand jury subpoenas from the New York's Attorney General's office.
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Shares of electric vehicle maker Nikola  (NKLA) - Get Report were falling Tuesday after a regulatory filing disclosed that the company is currently facing legal proceedings from various government agencies. 

The company said that Nikola and its founder Trevor Milton received grand jury subpoenas from the U.S. Attorney's Office for the Southern District of New York and the New York County District Attorney's office in September. 

The revelation was part of a regulatory filing section listing potential risk factors for the company going forward.

Nikola also disclosed that it has four putative class action lawsuits pending against the company, as well as current and former officers and directors. 

Nikola shares were falling 5.1% to $17.68 Tuesday morning. 

Nikola's stock has dipped in the weeks since Milton stepped down as chairman of the company amid allegations made by short seller Hindenburg Research that led to a Securities and Exchange Commission investigation into fraud by the company.

Nikola shares were rising in premarket trading Tuesday, however, following the company's better-than-expected third quarter earnings results issued after the closing bell Monday. 

The Phoenix company reported a GAAP net loss of 31 cents a share, versus analyst estimates of a 33-cent loss. The company hasn't yet reported revenue.

The company reiterated that talks are continuing on a joint venture with General Motors  (GM) - Get Report that would give GM an equity stake in return for certain services, including engineering and building the Nikola Badger