US SEC settles fraud charges against Hyzon Motors over misleading investors (updated)

Hyzon Motors

26/09/2023 22:40

(Adds details from complaint and settlement along with company
statement from fourth paragraph onward)
    By Kanishka Singh
       WASHINGTON, Sept 26 (Reuters) - The U.S. Securities and
Exchange Commission said on Tuesday it settled fraud charges
against Hyzon Motors  HYZN.O  of misleading investors.
    The company, a maker of hydrogen fuel cell electric
vehicles, was charged with misleading investors about its
business relationships and vehicle sales before and after a July
2021 merger with a publicly traded special purpose acquisition
company, or SPAC. 
    The SEC also charged Craig Knight, Hyzon's former CEO, and
Max Holthausen, former managing director of Hyzon's European
subsidiary, for their roles in the fraudulent scheme, it said in
a statement.
    The company also confirmed the settlement and said it was
"pleased to put this chapter behind us."
    Without admitting or denying the allegations in the SEC's
complaint, Hyzon agreed to pay a civil penalty of $25 million in
three installments, according to the settlement.
    In the second quarter of 2023, Hyzon accrued a $22 million
loss contingency, based upon its management's assessment of the
SEC investigation.
    Knight and Mark Gordon, Hyzon's former chief financial
officer, each reimbursed Hyzon $252,000 and $122,500,
respectively, for bonuses they received during the twelve-month
period after Hyzon misstated its financial statements, the SEC
said.

 (Reporting by Kanishka Singh in Washington; Editing by Leslie
Adler and Sonali Paul)
 ((Kanishka.Singh@thomsonreuters.com; +12024508248))