SEC settles fraud charges against Hyzon Motors

(Reuters) — The U.S. Securities and Exchange Commission said Tuesday it settled fraud charges against Hyzon Motors 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.

The company 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.

Mr. Knight and Mark Gordon, Hyzon’s former chief financial officer, reimbursed Hyzon $252,000 and $122,500, respectively, for bonuses they received during the 12-month period after Hyzon misstated its financial statements, the SEC said.