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Posts Tagged ‘SEC sues Musk’

SEC Says Musk’s Response to Lawsuit “Borders on the Ridiculous”

Regulators tell court Tesla CEO failed to clear a single tweet with automaker per settlement.

by Paul A. Eisenstein on Mar.19, 2019

Tesla CEO Elon Musk shown during last week's unveiling of the new Model Y.

Federal regulators have shot back at Tesla CEO Elon Musk in their battle over a contempt-of-court lawsuit, claiming the 47-year-old executive’s legal argument “borders on the ridiculous.”

The case stems from a tweet Musk filed last month declaring that Tesla would produce 500,000 vehicles this year. The Securities and Exchange Commission considered that “material” guidance which, under terms of a separate case last year, required the CEO to first get the approval of the company. But, the SEC said in a new filing, Musk has not cleared a single tweet with Tesla as he had agreed to.

Breaking News!

The lawsuit is being heard by U.S. Judge Alison Nathan who could hold Musk in contempt and levy fine or other forms of punishment. The Tesla executive was already forced to relinquish his post as chairman and could now be removed as the automaker’s chief executive officer.

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SEC Prepping Response to Musk Over Tweet Dispute

Tesla CEO claims agency wants to restrict his 1st Amendment rights.

by Paul A. Eisenstein on Mar.13, 2019

Tesla CEO Elon Musk emphasized his distaste for the SEC during an interview on "60 Minutes."

A federal judge has given the SEC permission to fire the next shot in an ongoing battle that could determine not only whether Tesla CEO Elon Musk can continue tweeting about company business but whether he may face new penalties for allegedly violating terms of a fraud settlement.

The Securities and Exchange Commission accused Musk of improperly publishing a tweet on February 19th outlining Tesla’s 2019 production plans. In technical terms, the agency referred to it as a “material” statement, one that could impact the company’s stock price. Musk later revised the tweet and then asserted that the information had been previously announced, anyway.

Beyond the Headlines!

The latest in an ongoing battle between securities regulators and the 47-year-old executive could have a significant impact if the courts agree with the SEC that last month’s tweet violated an agreement aimed at settling the fraud settlement stemming from Musk’s proposed plan to take Tesla private. He not only paid a fine but agreed to run material comments by the automaker’s legal team before posting them. As part of last year’s settlement, Musk was forced to relinquish his position as Tesla chairman. He could now face penalties including his removal from the CEO’s job, as well.

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Update: Musk Denounces SEC Lawsuit

“Unjustified action…leaves me deeply saddened and disappointed.”

by Paul A. Eisenstein on Sep.28, 2018

Tesla CEO Elon Musk refuted the fraud charges brought against him in a lawsuit by the SEC.

Elon Musk and the Tesla board have fired back at the SEC, denouncing the federal lawsuit that could lead to the ouster of the automaker’s founder and CEO.

On Thursday, the Securities and Exchange Commission sued Musk, alleging he made “false and misleading statements” to investors when tweeting and posting about his plans to take the carmaker private last month. The suit could force Musk’s ouster, bar him permanently from holding a position of authority at a public company and result in millions of dollars in fines.

News Now!

While Tesla itself was not named in the suit, many observers expect that move could yet follow. Even if it didn’t, the company has been targeted by several investor lawsuits. (more…)