SEC Sues Elon Musk, Seeks to Ban Him from Running Tesla or Any Public Company
September 27th, 2018Update: Musk to Resign as Tesla Chairman, Remain as CEO in SEC Settlement
Via: Reuters:
Tesla and Elon Musk have agreed to pay $20 million each to financial regulators and the billionaire will step down as the company’s chairman but remain as chief executive, under a settlement that caps a tumultuous two months for the car-maker.
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Via: Mercury News:
In a blockbuster move Thursday, the U.S. Securities and Exchange Commission filed fraud charges against Tesla Chief Executive Elon Musk, and is seeking to ban the electric-car maker’s high-profile boss from running any publicly traded company.
Filed in the U.S. District Court for the Southern District of New York, the charges are related to Musk’s August announcement that he wanted to take Tesla private for $420 a share. Musk dropped the bombshell idea in an August 7 tweet in which he said he had “funding secured” to take Tesla private, but provided no financing details at that time.
“Neither celebrity status, nor reputation as a technological innovator, provide an exemption from the federal securities laws,” said Stephanie Avakian, co-director of enforcement for the SEC, during a press conference Thursday.
