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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: 5, Insightful) by JoeMerchant on Sunday September 30 2018, @04:23PM
Looks to me like those possibilities just left the hands of a blabbermouth who can't appropriately filter his materially significant musings from his public announcements. It might slow him down enough to focus his creative energies on something besides frothing up the markets who hang on his every word to attempt to speculate future movements. If I worked for Musk and I "leaked" news like that to the press, I'd be hanged, drawn and quartered by the SEC - or at least as near as they could come. Those same rules also apply to the man doing the waffling, just as much as his minions who are charged with keeping confidential information confidential until it is at a state suitable for public announcement.
Україна досі не є частиною Росії Слава Україні🌻 https://news.stanford.edu/2023/02/17/will-russia-ukraine-war-end