US SEC Settles Fraud Charges Against Hyzon Motors for Misleading Investors – Reuters

By Kanishka Singh

The U.S. Securities and Exchange Commission (SEC) announced on Tuesday that it has settled fraud charges against Hyzon Motors for misleading investors.

Hyzon, a manufacturer of hydrogen fuel cell electric vehicles, faced allegations of providing false information regarding its business relationships and vehicle sales both before and after its merger in July 2021 with a publicly traded special purpose acquisition company (SPAC).

The SEC also charged Craig Knight, Hyzon’s former CEO, along with Max Holthausen, who previously served as the managing director of Hyzon’s European subsidiary, for their involvement in the fraudulent activities.

In response to the settlement, Hyzon expressed its satisfaction in moving forward and stated it was "pleased to put this chapter behind us."

Without admitting to or denying the SEC’s allegations, Hyzon agreed to pay a civil penalty of $25 million, which will be settled in three installments.

During the second quarter of 2023, Hyzon recognized a loss contingency of $22 million, reflecting its management’s assessment of the ongoing SEC investigation.

Additionally, both Knight and Mark Gordon, Hyzon’s former chief financial officer, reimbursed the company $252,000 and $122,500, respectively, for bonuses received during the twelve-month period following the company’s financial statement misstatements, as noted by the SEC.