Connect with us

Hi, what are you looking for?

Business

SEC files plan to pay $40M to Tesla shareholders in wake of Elon Musk tweets

The Securities and Exchange Commission has filed a plan to distribute more than $40 million to Tesla shareholders in what one source said was a win for Elon Musk, who had pressed the issue in federal court. The payout is part of the long-running saga of Musk and his tweets — specifically one in 2018 that said he’d arranged financing to sell Tesla for $420 a share. The SEC rapped him on the knuckles for what it said was fraud; Musk and the regulator settled — leading to a $20 million fine for Tesla and a $20 million fine for Musk personally that would be distributed to shareholders. Musk on Tuesday for the first time asked a federal judge to be let out of the SEC settlement — a so-called “consent order” that calls for a Tesla lawyer to vet his tweets before sending. Musk claimed in February that the SEC hadn’t held up its end of the bargain and had stiffed affected shareholders out of their $40 million. New York Southern District Judge Alison Nathan on Tuesday ordered the SEC to answer Musk’s request to terminate the consent decree by March 22, court filings said. Later in the day, the SEC filed a distribution plan to pay Tesla shareholders. Judge Nathan also ruled that a Nov. 29 subpoena the SEC served on Tesla to probe compliance with the September 2018 settlement between the company and the regulatory agency exceeded the investigatory power of the SEC and was issued in bad faith since it did not go through the court, court filings said. The SEC wants to prove that Musk has been sending tweets without the approval of Tesla lawyers and therefore has broken the consent decree, sources familiar with the matter said. Judge Nathan soon will rule on whether both sides are playing by the rules — or if the SEC has the right to investigate Musk’s behavior and perhaps impose greater penalties. In a sworn declaration, Musk claimed he was “forced” to sign the SEC truce that settled the flap over his now-infamous Aug. 7, 2018, tweet in which he claimed he had “funding secured” to take Tesla private at $420 a share.

Click to comment

Leave a Reply

Your email address will not be published.




Advertisement

You May Also Like

Business

Contact The Author Female employees at CNN are furious that chief spokesperson Allison Gollust is keeping her job after lying about her affair with...

Business

Katie Couric dished on Jeff Zucker and Allison Gollust’s relationship in her tell-all memoir last fall, saying it struck staffers as “super strange” when...

Business

North Korean hackers managed to steal a fortune in cryptocurrency in 2021, according to the results of a recent study. Cybercriminals based in North...

Finance

THE COUNTRIES of East and South-East Asia are renowned, even envied, for reshaping global supply chains. Less well appreciated is the extent to which...