Tesla-Musk $40 million SEC fine-distribution plan is approved

A judge approved a plan by the U.S. Securities and Exchange Commission for distributing $40 million to Tesla Inc. shareholders from money paid by the company and Chief Executive Officer Elon Musk in a 2018 settlement over his Twitter posts.
By : Bloomberg
| Updated on: 26 Mar 2022, 11:58 AM
File photo of Tesla's electric cars at a dealership in the US. (Bloomberg)
File photo of Tesla's electric cars at a dealership in the US. (Bloomberg)
File photo of Tesla's electric cars at a dealership in the US. (Bloomberg)
File photo of Tesla's electric cars at a dealership in the US.

A judge approved a plan by the U.S. Securities and Exchange Commission for distributing $40 million to Tesla Inc. shareholders from money paid by the company and Chief Executive Officer Elon Musk in a 2018 settlement over his Twitter posts.

U.S. District Judge Alison Nathan on Friday approved the regulator’s plan to pay the money to Tesla shareholders who lost money during a short-lived run-up in the company’s stock price after Musk claimed on Twitter he was thinking about taking the company public. Tesla shares fell the next day.

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Musk had complained the SEC was dragging its feet on distributing the fines and that the agency is using a 2018 settlement agreement to stifle his free-speech rights. He’s seeking to end SEC oversight of his Twitter posts. The SEC argues that Musk’s tweets about Tesla are a valid subject for government investigation with or without the settlement.

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Under the SEC’s plan, money will go to investors who lost money buying Tesla shares between 12:48:16 p.m. EDT on Aug. 7, 2018, and 4 p.m. Aug. 8.

The case is U.S. Securities and Exchange Commission v. Musk, 18-cv-08865, U.S. District Court, Southern District of New York (Manhattan)

First Published Date: 26 Mar 2022, 11:58 AM IST
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