September 27, 2018

Elon Musk, the CEO and Chairman of Tesla Inc, has been charged with violating the antifraud provisions of federal securities laws through misleading tweets made in August that a plan to privatize Tesla was imminent pending a shareholder vote. The statement allegedly caused significant market disruption, along with a 6 percent jump in Tesla’s stock value, and has led the SEC to seek a permanent injunction and bar to prevent Musk from taking on a leadership position in a publicly traded company, in addition to the usual civil penalty and disgorgement. SEC

Tagged in: Securities Fraud,