Pashman Stein Walder Hayden P.C. Represents Lead Class Plaintiff in Shareholder Lawsuit Involving Ch. 11 Debtor Nikola
Joseph C. Barsalona II, partner in the Bankruptcy, Restructuring and Creditors’ Rights practice at Pashman Stein Walder Hayden P.C., was recently quoted in a Law360 article titled, “EV Maker Nikola Aims For Quick Ch. 11 Sale.” Nikola, which produces electric and hydrogen-powered trucks, filed for Chapter 11 protection on February 19, 2025. Barsalona and Pashman Stein attorney Michael J. Custer serve as lead bankruptcy counsel to the lead class plaintiff in a shareholder lawsuit involving Nikola.
Law360 included statements made by Barsalona in the first-day hearing during his argument in support of the Debtor’s request to shorten notice on the bidding procedures to sell the company, which the court granted:
Joseph C. Barsalona II, an attorney representing the lead class plaintiff in a shareholder lawsuit accusing Nikola of inflating its stock price by exaggerating its ability to manufacture electric trucks, said his client wants the case to move quickly. A settlement was reached in that case before Nikola filed for Chapter 11, according to court documents.
"We believe it is a melting ice cube with $45 million of cash unencumbered, and the faster that we get to a resolution of phase one with the sale process, we can move into the more important items for my client, as well as all general unsecured creditors, Your Honor, which is getting to distributions under a plan."
Judge Thomas M. Horan scheduled a March 7 hearing to consider the proposed bidding procedures and an April 10 sale.
The lead class plaintiff is represented by Jeremy A. Lieberman, Brian Calandra and Michael J. Wernke of Pomerantz LLP, Jonathan Gardner, Michael H. Rogers, Michael Canty, James T. Christie and Jacqueline Meyers of Labaton Keller Sucharow LLP, Joseph C. Barsalona II and Michael J. Custer of Pashman Stein Walder Hayden P.C., and Jeffrey Block, Jacob Walker, Michael D. Gaines and Mark Byrne of Block & Leviton LLP.
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