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SEC Settlement: Elon Musk Resigns as Chairman of Tesla, Stays as CEO, $40 Million in Fines Paid

posted by martyb on Sunday September 30 2018, @12:09PM   Printer-friendly
from the make-stupid-tweet-pay-stupid-fine dept.

takyon writes:

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]

Original Submission

 
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  • (Score: 3, Touché) by Ethanol-fueled on Sunday September 30 2018, @06:46PM (2 children)

    by Ethanol-fueled (2792) on Sunday September 30 2018, @06:46PM (#742138) Homepage

    You will, because Musk is going crazy Howard Hughes-style. Pictures of him running around naked on his front yard during an ayahuasca binge will be posted on TMZ, and during interviews he will make comments about "The Jews running everything." In another few years, he will be found dead on his bed wearing a pair of black Nike shoes, with a suicide note stating that he is god and that he is returning to outer space. Police will remark that David Bowie's Space Oddity was playing in a loop where his body was found.

    This is why people shouldn't smoke marijuana on a regular basis. People lose sanities and fortunes from marihuana addictions.

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  • (Score: 3, Funny) by PartTimeZombie on Sunday September 30 2018, @08:48PM (1 child)

    by PartTimeZombie (4827) on Sunday September 30 2018, @08:48PM (#742154)

    People lose sanities and fortunes from marihuana addictions.

    True. I smoked one marihuana and look what happened. I'm now a zombie (sometimes).

    • (Score: 2) by bob_super on Monday October 01 2018, @05:29AM

      by bob_super (1357) on Monday October 01 2018, @05:29AM (#742242)

      If you had remembered not to inhale, you could have ended up US president.