SoylentNews is people
SoylentNews
from the make-stupid-tweet-pay-stupid-fine dept.
Tesla and CEO Elon Musk will pay $40 million to settle SEC case
Tesla and Chief Executive Elon Musk have settled a Securities and Exchange Commission lawsuit that alleged the outspoken businessman misled investors about his prospective effort to take the electric-car company private.
Musk and the Palo Alto company agreed to pay a total of $40 million, and he will give up his chairmanship for at least three years. Musk, however, will remain chief executive and retain a seat on the company's board of directors. Tesla, meanwhile, is required to install an independent chairman and add two new board members, according to terms of the settlement, which the SEC announced Saturday.
Musk and Tesla will each pay $20 million to settle the case; both reached the deal without admitting wrongdoing. The company declined to comment.
The SEC charged Musk with fraud Thursday, alleging that his tweets about taking Tesla private — at $420 a share — were "false and misleading." As part of the lawsuit, it asked a federal court to remove him from the company's leadership and ban him from running a public company.
Also at Reuters.
SEC Settlement announcement.
Previously: Elon Musk Considers Taking Tesla Private
Elon Musk Accused by SEC of Misleading Investors in August Tweet [Updated]
(Score: 2) by DannyB on Sunday September 30 2018, @03:28PM (2 children)
What about SCO?
SCO did far, far worse in the day. From my recollections and opinions... Fraudulently boosting their stock to many times its value, up to over $20. Then when the court started pointing out their complete lack of evidence, it all crashed down to 2 cents, kicked off Nasdaq, and on pink sheets, not really tiraded to this very day.
Darl McBride was able to bamboozle analysts and investors. Some predicted SCOs value to maybe reach $50 / share. Others writing glowing things about SCO's prospects. Forbes' article by Dan Lyons, "What SCO Wants, SCO Gets".
In the end, SCO had nothing. They never had anything but an attempt to extort IBM to pay several billion dollars, for which SCO would happily accept merely hundreds of millions. Regardless of my opinions, the court definitely smacked SCO down in August - September of 2007. Because SCO saw things in court not going so well, after years of the court giving SCO enough rope to hang themselves, on the eve of SCO's trial, Sept 17, 2007, SCO declared bankruptcy. Even though they were still solvent. Also SCO executives made sure to order pizza the day before, while planning their bankruptcy no doubt, so they could stiff the pizza place. Because only real gentlemen pay for their meals.
Regardless of my opinions and recollections, there is much, MUCH more. Vast amounts of analysis and commentary are on Groklaw. But the real court record is also on Groklaw, and no doubt still in the court clerk's records.
Hey SEC!!! What about SCO?
The lower I set my standards the more accomplishments I have.
(Score: 2) by JoeMerchant on Sunday September 30 2018, @04:25PM (1 child)
Ever try to extract blood from a turnip?
Justice isn't blind, potential payout analysis is performed long before starting basic research into a case.
🌻🌻 [google.com]
(Score: 3, Insightful) by DannyB on Sunday September 30 2018, @08:21PM
It may not be about getting fines, it may be about justice. At the very least sending a message to others who would do the same.
The lower I set my standards the more accomplishments I have.