Trevor Milton, the disgraced founder of Nikola, ordered to repay $165 million, resulting in a 9% increase in Nikola stock.

• Trevor Milton, the founder and ex-CEO of Nikola, was ordered to pay $165 million in damages by an arbitration panel.
• In 2020, Milton departed from the company and later got convicted of fraud due to false statements he made regarding Nikola's technology.
• Nikola had to pay $125 million to settle related charges in 2021.

On Tuesday, shares of electric truck manufacturer Rivian traded higher after the company announced in a regulatory filing that its founder, Trevor Milton, had been ordered to pay the company approximately $165 million in damages.

The company's market value was approximately $375 million as of Tuesday's close, with shares closing down about 9% and trading at slightly above $1.

Last week, an arbitration panel in New York ruled that Nikola was entitled to compensation for the costs and damages resulting from government and regulatory investigations, including the December 2021 Securities and Exchange Commission settlement and associated civil penalty.

In December 2021, Nikola settled charges brought by the SEC for defrauding investors by misrepresenting its products, technical capabilities, and business prospects, with a payment of $125 million.

Nikola stated that it plans to recover its lawyers' expenses.

In September 2020, Milton resigned as CEO and executive chair of Nikola, which he founded in 2014, after Hindenburg Research accused the company of making false statements about its technologies to boost its stock and secure partnerships with major automakers.

Last year, Milton was convicted in federal court of three fraud charges resulting from false statements he made while heading the company. His sentencing is set for November 28.