Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

admin
Pinned March 24, 2021

<> Embed

@  Email

Report

Uploaded by user
Elon Musk and Tesla face lawsuit for allegedly violating SEC deal
<> Embed @  Email Report

Elon Musk and Tesla face lawsuit for allegedly violating SEC deal

Elon Musk and Tesla face lawsuit for allegedly violating SEC deal

Musk apparently isn’t seeking the approval he needs.

Jon Fingas
J. Fingas
March 13th, 2021
Elon Musk and Tesla face lawsuit for allegedly violating SEC deal | DeviceDaily.com
ODD ANDERSEN/AFP via Getty Images

Elon Musk is once again facing legal trouble for his tweets. Both Bloomberg and TechCrunch report that investor Chase Gharrity has sued Musk and Tesla for allegedly violating the terms of an SEC deal governing the CEO’s tweets. Musk continues to send unapproved, “erratic” tweets that open the company billions of dollars in potential losses and penalties, Gharrity said. The investor also claimed that Tesla hadn’t obtained general counsel that could offer advice “untainted by Musk.”

The most notable example was a May 1, 2020 tweet in which Musk claimed that Tesla’s share price was “too high imo.” That post sent Tesla’s stock plummeting 12 percent in just 30 minutes, and Musk would go on to say it was neither a joke nor screened in advance.

Musk’s first tweet-related SEC confrontation came in August 2018, when he talked about Tesla going private. He reached a settlement with the SEC later that year, only to grapple with the regulator again in 2019 over EV production claims. An amended deal from April 2019 requires that Musk get pre-approval from a securities lawyer before he tweets anything relating to key events and financial data.

Tesla hasn’t commented on the lawsuit and is believed to have disbanded its PR team.

There are no guarantees the lawsuit will move forward. If it does, though, it could have significant ramifications for Musk and Tesla. While the court can’t impose regulatory consequences like the SEC, it could impose penalties and otherwise put pressure on Tesla to rein in Musk’s Twitter habits.

Engadget

(10)