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US Federal Judge Demands Explanation Of SEC-Musk Settlement, Musk Mocks SEC


10/05/2018


US Federal Judge Demands Explanation Of SEC-Musk Settlement, Musk Mocks SEC
Tesla’s Elon Musk is apparently in trouble once against after having mocked the United States Securities and Exchange Commission (SEC) a few hours after he and the regulator was ordered by a federal judge to explain the justification of the settlement between the two parties where Musk was allowed retain the position of CEO of the electric car maker Tesla.
 
“Just want to that the Shortseller Enrichment Commission is doing incredible work,” Musk wrote on Twitter. “And the name change is so on point!”
 
Musk has repeatedly taken to Twitter to vent his anger and dissatisfaction against the short sellers who bet for Tesla shares falling down.
 
It was just five days ago that the Musk and the SEC arrived at a settlement against the charges brought against the billionaire entrepreneur by the regulator in relation to a number of misleading tweets on August 7, where Musk had disclosed his plans of taking Tesla private and announcing securing of funds for the same at $420 a share of the electric car maker.
 
Under the agreement, a fine of $20 million each was agreed to be paid by Musk and Tesla and Musk could not be made the chairman of the company for three years.  The company was however not charged with fraud.
 
There were no comments from Tesla and the SEC on the news.
 
Musk’s latest tweet was questioned by former SEC lawyers. But they also thought that the agreement would not get jeopardised because of the tweet. “I don’t think the SEC would look at this as a denial of the facts alleged,” said Peter Henning, a law professor at Wayne State University in Detroit. “But you don’t take gratuitous shots at the SEC. There’s no real upside.”
 
There was a drop of 4.4 per cent in the share price of Tesla by $12.97 at $281.83 and again noted a drop of 2.1 per cent after the latest tweet from Musk.  
 
The tweet was posted less than four hours after Musk and the SEC were ordered to justify the settlement agreement that they had entered into. Both the parties have been given till October 11 to answer and explain why the agreement can be considered to have been taken in the best interest of the public and should be considered fair and reasonable.
 
Nathan said it was her regular practice to request such letters.
 
“She may want to know why Tesla is paying a fine because the CEO doesn’t know when to shut up,” said Adam Pritchard, a University of Michigan law professor and former SEC lawyer.
 
Here were over 2,500 responses to Musk’s latest tweet where some respondents questioned the wisdom of the entrepreneur.
 
“Seriously? You know you still need their help convincing a judge that your penalty was sufficient... Maybe a 420M fine would have been more appropriate?” one Twitter follower said. The proposed take-private price was $420 a share.
 
Musk replied, “the opposite is true.”
 
(Source:www.livemint.com)


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