Tesla's Elon Musk settles with SEC, paying $20 million fine and resigning as board chairman

[Eugene]

Source: Washington Post

By Renae Merle
September 29 at 5:40 PM

Tesla chief executive Elon Musk agreed on Saturday to pay a $20 million fine and step down as board chairman as part of a settlement with the Securities & Commission that he misled investors about his plans to take the company private.

Tesla will separately pay another $20 million and agreed to add two new independent directors to its board. Under the settlement, Musk will resign as chairman of the automaker within 45 days and be barred from that position for three years.

The deal marks a quick resolution to a potentially devastating case for Musk. The SEC sued him on Thursday alleging he lied when he tweeted this summer that he had secured funding to take Tesla private. The agency saw his dismissal as Tesla CEO and sent Tesla’s stock plummeting.

Musk had stunned global financial markets on Aug. 7 when he issued tweets saying he had the “funding secured” to take his automaker private. But federal securities regulators say his statement was deceptive because the deal was in its infancy and sued.

-snip-


Read more: https://www.washingtonpost.com/business/2018/09/29/teslas-elon-musk-settles-with-sec-paying-million-fine-resigning-board-chairman/

[cstanleytech]

1. So let me see if I understand this. The President can lie on twitter and its ok but anyone else will

be prosecuted?

[turbinetree]

2. Yepper, spot on......................

And when his hand picked associate justices, the leader of there party, and anyone else in there party can lie .....................and they blame it on a "witch hunt" and they blame everyone else ........................a libertarian phrase created in the 1950's

[bucolic_frolic]

4. Musk lied about his publicly traded company

He had a fiduciary duty to the integrity of the markets and investors. Every CEO and corporate officer and investment bank knows that rule.

Trump can lie at will without consequences. Everytime he launches a tariff war with China it sends the markets into a tailspin.

[PoliticAverse]

7. Do you think politicians would pass a law that would make it illegal for politicians to lie? n/t

[cstanleytech]

10. The question is not if the politicians would pass such a law the question is will the voters

ever say "Enough is enough" and force them to do so.

[truthisfreedom]

3. Maybe this will allow Elon to get some much-needed rest.

[Fred Sanders]

5. He is still CEO, but I agree. He is still the brain.

"Under the settlement, Musk will resign as chairman of the automaker within 45 days and be barred from that position for three years. But he will remain Tesla’s CEO and does not have to admit wrongdoing as part of the deal."

[miyazaki]

6. Twitter's like a loaded gun with some of these idiots rolf. nt

[Julian Englis]

8. Gonna be some fun lawsuit over this. n/t

[paleotn]

9. Elon, just run the damn company and shut the hell up...

Don't act like mangofuhrer. You've got a corporate communications department who's sole job is to vet your tweets. Use them.