Musk & SEC Explain Settlement In Joint Letter To Judge

Elon Musk

OCT 11 2018 BY STEVEN LOVEDAY 12

Now, we just wait for the judge’s approval.

Following the recent disclosure of a proposed settlement between Elon Musk and the SEC, the two sides were instructed to provide a judge with a full explanation of the terms so that the process could be made final. Musk (Tesla) and the SEC submitted a joint letter dated October 10, 2018 to assure that the deal is fair and proper on both sides of the argument — in the judge’s words, “minimal determination of whether the agreement is appropriate.” U.S. District Judge Alison Nathan requested the letter and should soon make her decision.

This all takes us back to the CEO’s August tweets about considering taking Tesla private. Musk found himself heavily scrutinized and eventually subpoenaed specifically related to his “funding secured” confirmation, among other issues. Being that it was later realized that funding may not have actually been set, this was considered a violation by Musk and one that likely jeopardized certain stockholders’ financial situations.

As we previously reported, the settlement calls for Musk to step down from his position as Tesla’s board Chairman, pay a fine of $20 million, and be subject to future communication monitoring. Additionally, Tesla was slapped with a separate $20 million fine and two new independent directors must be appointed to the board. There are more specific details related to the settlement, which you can find in absolute detail by following the link at the bottom of the page.

The SEC explained in its portion of the letter that it “considered multiple factors in determining appropriate civil penalties.” These factors include but are not necessarily limited to:

  • the market impact caused by the alleged conduct
  • the Defendants’ financial means
  • the Defendants’ willingness to settle these actions promptly
  • the Defendants’ apparent lack of pecuniary gain
  • the limited temporal scope of the conduct

Tesla and CEO Musk’s portion of the letter simply says:

Tesla and Mr. Musk believe that a prompt resolution of these actions through settlement is in the best interests of investors and should be approved.

The official letter can be accessed by clicking here.

Source: Teslarati

Categories: Tesla

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12 Comments on "Musk & SEC Explain Settlement In Joint Letter To Judge"

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Roy_H

Doesn’t seem much like an explanation, just re-iterates the settlement and re-affirms both parties accept it. However I hope the judge accepts this as I think the most important thing is to get this over with and behind us.

Another Euro point of view

SEC: We have no doubt Mr. Musk will fully comply with this settlement requirements your honor
Musk (4.20 pm): May I leave the room for 2 minutes your honor, I have no network here.

John

HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA!!!!!!!! Man, that’s good

Scott Franco

So…. from this I can gather the SEC and Musk are talking to each other (civilly) again?

Another Euro point of view

I rather understood that SEC has nothing against Musk expressing is personal opinion about them. SEC is not there to be liked by people, merely to enforce the law.

Scott Franco

So calling them the ‘Shortseller Enrichment Commission’ didn’t bother them? Wow they are really tough to annoy…

Mega

The SEC’s upper management, are a bunch of lawyers. They will have to form a committee to see if they are offended, and what to do about it.

ModernMarvelFan

Typically government agencies don’t get offended. That isn’t what government agency do. Government workers don’t take those agency title personally. Of course, the only person would take offense at something like this would have been Trump. Luckily he isn’t involved in this matter.

antrik

That’s the theory… In practice, I suspect the people working there might still take things personally. Though on the other hand, they are likely used to far worse…

antrik

Yet there was serious speculation that this might violate the terms of the settlement… Which frankly seemed quite strange to make.

QCO

Fortunately the response was in written form rather than an oral argument which would have provided Elon with an opportunity to say something “unhelpful”.

There is a certain wisdom in knowing when to shut up, regardless of principal!

Nick

Hopefully Musk will show his attitude to shorters in future by not helping them.