DUBLIN – Well, it seems that, like some other prominent Tweeters, Elon Musk is all Twitter and no substance. Despite his mocking of the SEC and his criticism of its judgement, court documents indicate that Musk is committed to the settlement his lawyers worked out with the securities regulator. The settlement must still be approved by a federal judge, and apparently the judge in question asked both sides why she should give the deal the nod. Let’s hope she’s not on social media – she may start to wonder why Musk is saying one thing in public and another in court. – Felicity Duncan
Elon Musk’s Settlement Still on Track Despite Tweet Mocking the SEC
By Dave Michaels
(The Wall Street Journal) WASHINGTON—Elon Musk remains committed to settling fraud charges with the Securities and Exchange Commission, according to a legal filing Thursday, despite recently mocking the case against him.
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Mr. Musk’s lawyers and the SEC submitted a joint legal filing Thursday that argues why a federal judge should approve separate settlements with the executive and Tesla Inc., TSLA -2.11% which requires them to pay $20 million each in fines over statements he made on Twitter that regulators said were misleading. U.S. District Judge Alison J. Nathan had asked the two sides to explain why the deal should be approved.
The deal also calls for Mr. Musk to step down as Tesla’s chairman and for the company to add two new independent directors.
Mr. Musk risked reigniting his battle with securities regulators last Thursday when he appeared to ridicule the SEC, suggesting it was enriching investors betting against the electric-car maker. “Just want to [say] that the Shortseller Enrichment Commission is doing incredible work,” Mr. Musk tweeted on Oct. 4. “And the name change is so on point!”
Mr. Musk also “liked” a response on Twitter that said in part: “Judge should dismiss this frivolous attack and shame the SEC.”
The joint filing submitted to the federal court said the settlements with Mr. Musk and Tesla are “fair, reasonable, and will serve the interests of the public and investors.”
The SEC sued Mr. Musk, alleging that he misled shareholders and violated securities law by tweeting Aug. 7 that he had funding secured to take the auto maker private.
The two sides announced their settlement on Sept. 29.
Write to Dave Michaels at [email protected]
