Home News The SEC has asked a judge to hold Elon Musk in contempt...

The SEC has asked a judge to hold Elon Musk in contempt for violating his settlement with the agency

122
0

The U.S. Securities and Exchange Commission asked a judge to Maintain Elon Musk in contempt for violating his October 16 settlement with the agency.

Bloomberg News reported. Though it is declining comment we got the bureau ’ s complaint.

Tesla has yet to respond to our requests.

At the crux of things: Last Tuesday night, Musk tweeted out to his 24 million followers that Tesla would make about 500,000 cars this year, adjusting himself hours later to clarify that he meant the company would be producing at an annualized rate of 500,000 vehicles by year’s end.

The following morning, Tesla announced that its general counsel, Dane Butswinkas, is leaving after only months on the job.

Butswinkas had reportedly battled on Musk’s benefit with the SEC last year, after Musk infamously tweeted in August that he had “funding secured” to take the company private when he had not.

In the long run, Musk and Tesla settled without admitting wrongdoing. However, Tesla had to pay a $20 million fine; Musk needed to agree to resign as Tesla chairman for a period of at least three years; the firm had to appoint two independent directors to the board; and Tesla was also told to put in place a way to monitor Musk’s statements to the general public about the business, including via Twitter.

In November, Tesla announced that Australian telecom executive and chair of Tesla’s audit committee Robyn Denholm would take over from Musk as chair of the business. In December, it appointed two independent directors to its board: Larry Ellison, executive chairman of Oracle, and Kathleen Wilson-Thompson, executive vice president of Walgreens Boots Alliance.

It’s Musk’s admission he didn’t obtain pre-approval for his tweet a week that the SEC believes “clear and convincing evidence that he violated the court’s final conclusion,” with the SEC adding in its filing that he has “not diligently attempted to comply” with that specific ruling.

Perhaps unsurprisingly, Musk hasn’t commented on the motion on Twitter, though he did write somewhat cryptically a couple of hours ago that “Fate loves irony. Frankly, too much. ”

Musk was less circumspect last year, telling “60 Minutes” in a segment that aired in early December, “I need to be clear: I do not respect the SEC, I do not respect them. ”

Fate *enjoys * irony. Frankly, too much.

— Elon Musk (@elonmusk) February 25, 2019

Typically, if a person is found to be guilty of contempt of court, they could face a fine, jail time or other penalty.

You can check the motion out below.


View this record on Scribd


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