The investigation was previously reported by the company on its Current Report on Form 8-K on January 12, 2022, and updated in its Annual Report on Form 10-K for the year ended December 31, 2022 and its Quarterly Report on Form 10-Q for the quarter ended June 30, 2023.

“Hyzon is pleased to put this chapter behind us, and continue our disciplined execution of operational milestones including commercial vehicle deployments and fuel cell technology developments,” said Hyzon Motors’ Chief Executive Officer (CEO) Parker Meeks. “With a strengthened Board of Directors and leadership team, a streamlined product offering, and a rationalized geographic footprint, we look forward to accelerating the hydrogen industry.”

Without admitting or denying the allegations in the SEC’s complaint, Hyzon has agreed to pay a civil monetary penalty of $25 million in three installments: $8.5 million within 30 days of entry of final judgment; $8.5 million by December 31, 2024; and $8 million within 730 days of entry of final judgment. In the second quarter of 2023, Hyzon accrued a $22 million loss contingency, based upon management’s assessment of the SEC investigation.

Also named in the SEC’s complaint were Craig Knight, the company’s former CEO and a former director, and Max C.B. Holthausen, a former managing director of the company’s European subsidiary, Hyzon Motors Europe B.V. Knight and Holthausen also separately consented to the entry of final judgments, subject to court approval, resolving the SEC’s allegations.

Further, former CEO Knight and Mark Gordon, Hyzon’s former Chief Financial Officer and a former director, have voluntarily returned $252,000 and $122,500, respectively, to Hyzon relating to certain incentive compensation that the company previously paid them.   

Further details regarding the resolution can be found in the SEC’s complaint and proposed final judgments, which are publicly available.