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martyb writes:

Elon Musk Reaches Settlement in SEC Tweet Battle:

Elon Musk has reached a deal with the Securities and Exchange Commission, the two parties said in a legal filing on Friday. The new agreement provides much more detailed guidance about when tweets and other public statements by Musk must be approved by Tesla lawyers.

Musk's original deal with the SEC was announced last September. It required Musk to obtain pre-approval for tweets that "contain or could contain" information that's material—legal jargon for information that's significant to shareholders. While the SEC expected Musk to begin regularly clearing tweets with lawyers, Musk interpreted this language as giving him significant discretion to decide for himself which tweets contained material information. As a result, he didn't seek legal review for any tweets in the first few months the agreement was in effect.

[...]Under the new rules, Musk must get a Tesla securities lawyer's sign off on tweets (and other communications) regarding Tesla's finances, its production and delivery numbers, new lines of business, sales projections, proposed mergers, fundraising efforts, regulatory decisions, and several other types of information.

The SEC says that if the judge signs off on these new terms, the SEC will drop its request for Musk to be held in contempt. In other words, the SEC seems to be satisfied with getting Musk to start seeking legal review for his tweets the way the agency thought Musk had been doing since last time. The SEC is not seeking to punish Musk further for his February tweet.

Given how well Elon Musk followed the intent of the prior ruling, I wonder how closely he will follow this ruling?

Previously:
Funding for Tesla to Go Private Could Come From Saudis; Lawsuits and SEC Scrutiny Increase
SEC Reportedly Subpoenas Tesla Over Take-Private Tweet
Tesla Facing Criminal Probe
Elon Musk Accused by SEC of Misleading Investors in August Tweet
SEC Settlement: Elon Musk Resigns as Chairman of Tesla, Stays as CEO, $40 Million in Fines Paid
Elon Musk Isn’t on His Twitter Leash Yet, So He’s Taunting the SEC

Original Submission

1. "martyb" - https://soylentnews.org/~martyb/
2. "Elon Musk Reaches Settlement in SEC Tweet Battle" - https://arstechnica.com/cars/2019/04/elon-musk-reaches-settlement-in-sec-tweet-battle/
3. "new agreement" - https://www.courtlistener.com/recap/gov.uscourts.nysd.501755/gov.uscourts.nysd.501755.46.0_2.pdf
4. "announced last September" - https://arstechnica.com/cars/2018/09/elon-musk-settles-fraud-charge-he-and-tesla-to-pay-40-million-in-penalties/
5. "Funding for Tesla to Go Private Could Come From Saudis; Lawsuits and SEC Scrutiny Increase" - https://soylentnews.org/article.pl?sid=18/08/13/2043231
6. "SEC Reportedly Subpoenas Tesla Over Take-Private Tweet" - https://soylentnews.org/article.pl?sid=18/08/16/0123234
7. "Tesla Facing Criminal Probe" - https://soylentnews.org/article.pl?sid=18/09/18/234244
8. "Elon Musk Accused by SEC of Misleading Investors in August Tweet" - https://soylentnews.org/article.pl?sid=18/09/28/0128240
9. "SEC Settlement: Elon Musk Resigns as Chairman of Tesla, Stays as CEO, $40 Million in Fines Paid" - https://soylentnews.org/article.pl?sid=18/09/30/0117223
10. "Elon Musk Isn’t on His Twitter Leash Yet, So He’s Taunting the SEC" - https://soylentnews.org/article.pl?sid=18/10/06/015236
11. "Original Submission" - https://soylentnews.org/submit.pl?op=viewsub&subid=33285

printed from SoylentNews, Elon Musk Reaches Settlement in SEC Tweet Battle on 2023-06-11 05:04:24