Tesla's Elon Musk sued by Securities and Exchange Commission for fraud
Elon Musk, CEO of Tesla, made a series of tweets saying, ``I want to take Tesla private. SEC) has sued Musk for fraud. Tesla shares plunged in after-hours trading following the SEC lawsuit.
Elon Musk Is Sued by SEC Over 'Funding Secured' Tweet - Bloomberg
SEC Co-Executive Director Steve Pickin said at a press conference that the investigation was complete and that it had promptly filed the case in federal court in Manhattan, New York. Regarding Mr. Musk's act of ``securing funds'' while keeping in mind the purchase of Tesla at $420 per share for Tesla's private company, specific conditions will be discussed in negotiations with investor candidates. Far from not being discussed, there was no discussion in the first place, and the statement that financial resources have been secured is false, and it has been recognized that it has caused confusion in the stock market.
Shareholders could either to sell at 420 or hold shares & go private
— Elon Musk (@elonmusk) August 7, 2018
U.S. Securities and Exchange Law prohibits executives of listed companies from misleading investors by providing false information about matters that are important to investors' investment decisions. Mask CEO's tweet actually caused Tesla stock to soar by about 6%, and the SEC seems to have filed a lawsuit against Mask CEO's act as a fraud.
Former SEC chief Robert Long said: 'It's rare that things move so quickly in a case of such importance, especially when it involves high-profile figures. It is possible that the investigation was completed quickly because it was narrowed down to tweets, ”he said, pointing out that the situation progressed quickly.
In the complaint, the SEC seeks not only to fine Musk, but also to prohibit him from participating in the management of public companies. The SEC appeal may develop into a problem with Musk CEO's Tesla and SpaceX.
Musk said, ``Such unjust behavior by the SEC leaves me deeply saddened and disappointed. I have always acted with truth, transparency, and investor interests. It's an important value and the truth will show that I never compromised.'
Tesla shares plunged more than 10% in after-hours trading after the SEC filed a lawsuit against Musk.
◆ 2018/09/30 postscript
Musk and the SEC reached a settlement on September 29, 2018 local time.
SEC settles charges with Tesla's Elon Musk, will remain as CEO
https://www.cnbc.com/2018/09/29/sec-settles-charges-with-teslas-elon-musk-will-remain-as-ceo.html
According to the terms of the settlement, Mask CEO and Tesla will pay $ 20 million (about 2.2 billion yen) as a fine, and Mask CEO will retire from Tesla's chairmanship. However, Mr. Mask can continue his duties as CEO and may return to chairmanship after three years.
Initially, Mask CEO was asked by the SEC to take strict measures to prohibit him from becoming a director of not only Tesla but also all listed companies, but this seems to have been avoided. As a result, we will continue to be able to steer Tesla and SpaceX.
Related Posts:
