Elon Musk settlement with SEC costs him Tesla (NASDAQ: TSLA) chairmanship and $20 million fine
Channel: RICH TV LIVE
Date: 29/09/2018

Elon Musk settlement with SEC costs him Tesla (NASDAQ: TSLA) chairmanship and $20 million fine - RICH TV LIVE - Septemebr 29, 2018 - The Securities and Exchange Commission reached a settlement of fraud charges on Saturday with Tesla Inc. and Elon Musk that forces Musk’s removal as chairman of the Tesla board and the payment of $40 million in penalties.

Musk will pay $20 million of the penalty personally, and will be ineligible to be re-elected chairman for three years. Tesla will pay the rest and must name two new independent directors, one of which can be the new chair.

The SEC filed a complaint against Musk on Friday that alleged when he tweeted on Aug. 7 that he could take Tesla TSLA, -13.90% private at $420 per share — a substantial premium to its trading price at the time — he knew that the potential transaction was uncertain and subject to numerous contingencies. Instead Musk had tweeted that funding for the transaction had been secured, and that the only remaining uncertainty was a shareholder vote.

See Also
Trump Speaks to Press After Senate Vote
×

Tesla Inc.
May 18
Jun 18
Jul 18
Aug 18
Sep 18
Source: Dow Jones Market Data
US:TSLA$225$250$275$300$325$350$375$400
According to the SEC, Musk had not discussed specific deal terms, including price, with any potential financing partners, and his statements about the prospective transaction lacked an adequate basis in fact. Musk’s misleading tweets caused Tesla’s stock price to jump by more than 6% on Aug. 7, and led to significant market disruption, including hundreds of pages of complaints filed with the SEC, according to a reporting by online media site the Outline, whose reporters said they had obtained 147 pages of complaints about Musk from investors in Tesla.

See: Tesla investors complained to the SEC — and here’s what they said

Read also: Why legal experts say the SEC has a strong case against Musk

The SEC also charged Tesla on Saturday with failing to have in place the required disclosure controls and procedures relating to Musk’s tweets, a charge that Tesla also has agreed to settle and which will result in comprehensive corporate-governance modifications and other reforms at Tesla. In addition to Musk’s removal as chairman of the Tesla board, to be replaced by an independent chairman, Tesla will also be required to appoint two new independent directors to its board.

Musk was expected to remain a member of the board of directors under terms of the settlement, which are subject to court approval. A Tesla spokeswoman did not immediately respond to a request for comment late Saturday.

Musk and Tesla agreed to settle the charges against them without admitting to or denying the SEC’s allegations.

Joshua Mitts, an associate professor at Columbia Law School, told MarketWatch that the Saturday settlement was a “win-win.

Subscribe - https://www.youtube.com/c/RICHTVLIVE
Visit - http://www.richtvlive.com/ a one-stop shop for cryptocurrency, stocks, sports, travel and trending topics. #richtvlive #stocks #news 

Join the Conversation get the RICH TV LIVE app at Google Play - https://play.google.com/store/apps/details?id=com.app.richtvlive
iPhone App Store - https://itunes.apple.com/us/app/richtvlive/id1212158240?Is=1&mt=8

Popular Uploads - https://goo.gl/tbvXGg
Most Recent Upload - https://goo.gl/unKXBy
YouTube Channel Page - https://goo.gl/yUdG7w
Subscribe - https://goo.gl/q2tLnn
Rich TV Live Playlist - https://goo.gl/e116JF
YouTube support Tubebuddy - https://www.tubebuddy.com/RICHTVLIVE

Disclaimer

Rich TV's company profiles and other investor relations materials, publications or presentations, including web content, are based on data obtained from sources we believe to be reliable but are not guaranteed as to accuracy and are not purported to be complete. As such, the information should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed in Rich TV reports company profiles or other investor relations materials and presentations are subject to change. Rich TV and its affiliates may buy and sell shares of securities or options of the issuers mentioned on this website at any time.

Investing is inherently risky. Rich TV is not responsible for any gains or losses that result from the opinions expressed on this website, in its research reports, company profiles or in other investor relations materials or presentations that it publishes electronically or in print.

We strongly encourage all investors to conduct their own research before making any investment decision. For more information on stock market investing, visit the Securities and Exchange Commission ("SEC") at www.sec.gov.