Home News Tesla’s Elon Musk does not need a hearing with NY judge, claims SEC in latest request

Tesla’s Elon Musk does not need a hearing with NY judge, claims SEC in latest request

0
Tesla’s Elon Musk does not need a hearing with NY judge, claims SEC in latest request

The skirmish between Elon Musk and the Securities and Exchange Commission (SEC) continued on Monday, with the agency calling on NY Judge Alison Nathan to make a decision on the case without holding a hearing for the Tesla CEO. The SEC’s latest petition comes on the heels of Musk’s response last Friday, when his legal team noted that the bureau ’s position is “incorrect at virtually every level. ”

The SEC argued in its latest petition to the NY judge that there isn’t any ambiguity to the terms of the settlement it reached with Musk last year. The agency accused the CEO of muddling the matter at hand as a result of his “selective omission of certain settlement communications” in his team’s filings last Friday, where Musk defended his actions.

With these factors in mind, the SEC noted that Judge Nathan should be able to decide whether Musk violated the terms of his settlement or not without holding a hearing. “There are no material issues of disputed fact,” the SEC wrote. The SEC added that it was ready to provide more written information on its settlement discussions with the Tesla CEO if Judge Nathan needs additional information.

(adsbygoogle = window.adsbygoogle || []).push({});

It should be noted that the SEC’s recent petition was filed following Musk’s legal team submitted a response last Friday. Musk’s attorneys didn’t hold back in their criticism of the SEC, stating that “The essential question is whether Musk complied with Tesla’s Policy, not whether the SEC is satisfied with Tesla’s Policy. ”

Musk’s team argued that the SEC laywers misinterpreted the deal he struck with them last September, stating that “the SEC’s answer makes clear that its effort to hold Musk in contempt relies on a radical reinterpretation of the Order which would impose sweeping restrictions to which Musk never agreed. ” The lawyers also noted that the information listed on Musk’s tweet, which estimated that Tesla would produce around 500,000 vehicles in 2019, was already public information following the CEO’s comparable estimates in the first quarter earnings call.

“Musk’s belief that his tweet didn’t require pre-approval was correct. Every trademark of immateriality is present: the tweet restated previously-disclosed information, used generalized terms, was aspirational and optimistic, and caused no reaction in after-hours trading,” Musk’s legal team wrote.

The SEC and Elon Musk’s latest row resulted from a tweet posted by the CEO on February 19, when he noted that Tesla made no cars in 2011, but will make “around 500K” this year. Musk later explained his tweet in a follow-up post, stating that the 500,000 estimate was true for the annualized run rate for Tesla’s 2019 production. The SEC seized on the opportunity, stating that the tweet was a breach of Musk’s settlement last September since it contained material information to the company and its shareholders.

In its petition to maintain Musk in contempt of court, the SEC pointed out that the February 19 tweet wasn’t assessed by corporate authorities. Musk, for his part, has argued that the SEC is “over-reaching” in its reactions against him, believing that the data he presented was a reiteration of public information, and it didn’t affect Tesla stock at all.

The post Tesla’s Elon Musk doesn’t require a hearing NY judge, claims SEC in latest petition appeared first on TESLARATI.

Buy Tickets for every event – Sports, Concerts, Festivals and more buytickets.com