SEC pushes court to hold Elon Musk in contempt over Tesla tweets

Tesla CEO Elon Musk is in blatant violation of a settlement agreement reached last year over securities fraud allegations, the U.S. Securities and Exchange Commission said in a biting response to the court that argued the billionaire entrepreneur be held in contempt.

The response, which was filed late Monday, is the latest salvo in the agency’s fight with Musk that was sparked by the now infamous “funding secured” tweet. The SEC filed a complaint in federal district court in September alleging that Musk lied when he tweeted on August 7 that he had “funding secured” for a private takeover of the company at $420 per share.

Musk and Tesla settled with the SEC without admitting wrongdoing. Tesla agreed to pay a $20 million fine; Musk had to agree to step down as Tesla chairman for a period of at least three years; the company had to appoint two independent directors to the board; and Tesla was also told to put in place a way to monitor Musk’s statements to the public about the company, including via Twitter.

It’s that final point about Musk’s use of Twitter that has raised the SEC’s hackles.

 » Read More

Loading...

What do you think?

0 points
Upvote Downvote

Total votes: 0

Upvotes: 0

Upvotes percentage: 0.000000%

Downvotes: 0

Downvotes percentage: 0.000000%

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

Loading…

Comments

comments

The most shocking part of HBO’s Theranos documentary, ‘The Inventor,’ according to director Alex Gibney

The most shocking part of HBO’s Theranos documentary, ‘The Inventor,’ according to director Alex Gibney

Reed Hastings says Netflix won’t be part of Apple’s upcoming video streaming service

Reed Hastings says Netflix won’t be part of Apple’s upcoming video streaming service