Last minute geek

last minute tech news from around the net

You are here: English BoingBoing ibag In SEC fraud case, Elon Musk will pay $20 million, quit as Tesla chairman, and have a boss

In SEC fraud case, Elon Musk will pay $20 million, quit as Tesla chairman, and have a boss

User Rating: / 0
PoorBest 
That sure was an expensive 420 joke. Tesla CEO Elon Musk has agreed to pay $20 million and step down from his role as chairman of the board of the company he founded for three years, in a deal with the U.S. Securities and Exchange Commission (SEC). The worst humiliation Elon Musk will have to face won't be the $20 million fine or the loss of his role as chairman. Elon Musk now has to have a boss. Hope they hire a good tweet editor for him, too. Musk didn't admit or deny that he misled investors under the civil fraud charge. Tesla was not charged with fraud. From Matthew Goldstein at the New York Times: The S.E.C. announced the deal two days after it sued Mr. Musk in federal court for fraud and misleading investors over his post on Twitter last month that he had “funding secured” for a buyout of the electric-car company at $420 a share. It is not clear why Mr. Musk changed his mind and agreed to settle but shares of Tesla have been hit hard since the S.E.C. filed the lawsuit. On Friday, the stock dropped about 13 percent. The deal will allow him to remain as chief executive officer. The terms are slightly tougher than those that two people briefed on the talks said Mr. Musk had rejected on Thursday, which called for a two-year bar on serving as chairman and a $10 million fine. Tesla, which is also settling, will pay a $20 million penalty. Read the rest

Read all
Comment Policy:
We pre-moderate any comments and welcome all kinds of thoughts, supportive, dissenting, critical or otherwise. We delete or censor comments that are:

* abusive
* off-topic
* contain personal attacks, or against any company or organization
* promote hate of any kind
* use excessively foul language
* is blatantly spam or advertising

We do not discriminate based on the person who is posting, and we never censor comments for political or ideological reasons. We never delete an appropriate comment because we disagree with its viewpoint or ideology, and we never publish an inappropriate comment because we agree with or support its viewpoint or ideology.


Attention spammers: we manually approve all comments. Spamming and blatant advertising will NOT be published on this site and is deleted immediately, you've been warned, do not waste your time here.

Add comment

Security code
Refresh