Trevor Milton, the recently pardoned founder of Nikola Corporation, is embroiled in a legal battle as he attempts to resist a subpoena issued by creditors of his bankrupt company, according to recent court filings. These creditors, represented by an official committee in Nikola’s bankruptcy case, first served the subpoena to Milton’s attorneys on April 1, seeking detailed insights into his current financial status. Milton reportedly owed Nikola approximately $100 million at the time the company entered bankruptcy proceedings earlier this year.
The subpoena comes on the heels of protracted disputes between Milton and Nikola, including an arbitration case last year related to Milton’s criminal conviction, in which he was ordered to pay substantial damages. Allegations have emerged from creditors suggesting that Milton transferred tens of millions of dollars in assets away from his personal accounts for the purpose of hindering the company’s ability to collect on this arbitration award.
For the past two months, Milton’s legal team has actively contested the subpoena, arguing that the requested documentation falls under a protective order already issued in a separate federal lawsuit filed by Nikola in Arizona. The ongoing dispute between Milton and Nikola’s creditors is set to be addressed in a court hearing scheduled for June 9.
Nikola’s assets have largely been divested throughout its bankruptcy process, with Lucid Motors securing its Arizona factory leases and headquarters, alongside approximately three hundred Nikola employees. Meanwhile, the company’s remaining fleet of hydrogen trucks was auctioned off separately. As a result, the arbitration award from Milton remains among the largest unresolved claims within Nikola’s estate.
Prior to its bankruptcy, the company was facing a class-action lawsuit linked to alleged deceptive statements made ahead of its entrance into the public market. Although Nikola reached a settlement with the Securities and Exchange Commission regarding similar allegations, the shareholder lawsuit itself remained unresolved at the time of bankruptcy. Nikola’s bankruptcy strategy initially counted on recovering Milton’s arbitration payment to settle outstanding shareholder claims. So far, creditors assert, none of this debt has been repaid by Milton.
In March, Milton received a surprise presidential pardon from former President Trump while appealing his four-year prison sentence. Shortly afterward, Nikola’s attorneys accused Milton of attempting to disrupt ongoing bankruptcy proceedings. Milton, for his part, has commissioned a documentary focusing on what he characterizes as flaws in the justice system and unfair treatment against him. The film is set to premiere on June 10, promising viewers what Milton describes as the “true story.”
