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BUSINESS INSIDER:
Elon Musk settles fraud charges with SEC for infamous ‘funding secured’ tweet, must step down as Tesla chairman and pay $20 million fine
Tesla’s Elon Musk has reached a settlement with the Securities and Exchange Commission (SEC), in an agreement that will require Musk to resign as chairman of the company for at least three years and pay a $20 million fine, the SEC announced Saturday.
SLATE:
Elon Musk Settles With the SEC, Will Step Down as Tesla Chairman
Embattled Tesla CEO Elon Musk has reached a settlement with the SEC over his misleading tweets about taking the company private, CNBC reports. Musk and Tesla will each pay a $20 million fine—about one-tenth of one percent of Musk’s nearly $20 billion fortune—and Musk will step down as chairman of the company’s board for at least three years while retaining his position as CEO. Tesla will also be required to appoint two new independent directors to its board and undergo additional changes to its corporate governance. The settlement still requires court approval.
CBC NEWS:
Tesla, CEO Elon Musk settle SEC fraud case for $40M
Tesla and Elon Musk have agreed to pay $20 million US 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. The securities fraud agreement, announced by the Securities and Exchange Commission (SEC) on Saturday, will come as a relief to investors, who had worried that a lengthy legal fight would only further hurt the loss-making electric car company.
BLOOMBERG:
Musk’s Tesla Fun Does Not Amuse SEC
What will happen now? Well, the rational thing is that everyone will realize that they don’t want to fight over this, they’ll sign a settlement much like the earlier one, except with a bigger fine, and Musk will agree to lay off Twitter for a bit.
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