In a late afternoon press conference, the co-directors of the SEC’s Division of Enforcement announced that the Commission has charged Tesla chairman Elon Musk with securities fraud based on his misleading tweets about taking his company private. The action, which was filed in the Southern District of New York, seeks, among other things, a bar prohibiting Musk from serving as an officer or director of a public company.
In early August, Musk tweeted that he could take Tesla private at $420 per share, and that funding for the transaction had been secured. The SEC alleges that Musk had not discussed a deal with any potential financing partners, and that he knew the transaction was uncertain and subject to numerous contingencies. The Commission also claims that the tweets caused a sudden spike in Tesla’s share price that led to significant market disruption, according to a news release.
Securities Regulation Daily will cover the complaint in greater depth in tomorrow’s issue.
Companies: Tesla Inc.
MainStory: TopStory Enforcement FraudManipulation NewYorkNews
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