Sept 11 (Reuters) - The U.S. Securities and Exchange

Commission moved on Thursday to dismiss its case againt Trevor

Milton, the founder and former CEO of Nikola, a company that

sought to make electric and hydrogen-powered trucks.

In the case, filed in 2021, U.S. prosecutors accused Milton

of falsely claiming that Nikola had built an electric- and

hydrogen-powered pickup from scratch and developed batteries

in-house while knowingly sourcing them externally.

In a document filed with the United States District Court

for the Southern District of New York on Thursday, the SEC

stated that it believes dismissing the case is appropriate.

Milton, who received a pardon from U.S. President Donald

Trump this year, also waived his right to seek legal costs and

released all claims against the agency, the document showed.

Nikola's ( NKLAQ ) stock plummeted after Hindenburg Research, a former

high-profile short-seller, targeted the company in 2020,

accusing it of deceiving investors about its technological

advancements.

It challenged a video Nikola produced showing its electric

truck cruising at high speed, when in fact the vehicle was

rolled down a hill.

Milton, who founded the Phoenix-based company in 2014,

resigned shortly after the report. Two years later, he was

convicted in October 2022 on one count of securities fraud and

two counts of wire fraud.

In 2023, a jury convicted Milton of misleading investors

about the company's technology, resulting in a four-year prison

sentence.

In February, Nikola became the latest electric vehicle maker

to falter, filing for Chapter 11 bankruptcy and announcing

plans to sell its assets.