BUSINESS, Commerce, Social media

SEC Punishes Elon Musk For Out Of Step Behavior

Photo Credit: AgnosticPreachersKid

The Securities and Exchange Commission (SEC) has forced Elon Musk to step down as Tesla’s chairman and pay a fine in a negotiated settlement over tweets he posted about taking the firm private.

The decision came as the SEC sought to sue Musk for alleged securities fraud.

Under the deal, Musk will remain as Tesla CEO but must give up his position as chairman for three years.

Both the firm and Musk will also have to pay a $20M fine.

The SEC’s chairman Jay Clayton said that he supported the deal and felt that it was in the best interests of U.S. markets and investors, including the shareholders of Tesla.

“This matter reaffirms an important principle embodied in our disclosure-based federal securities laws,” he said.

“Specifically, when companies and corporate insiders make statements, they must act responsibly, including endeavoring to ensure the statements are not false or misleading and do not omit information a reasonable investor would consider important in making an investment decision,” he further said.

Yvad Billings, Readers Bureau, Fellow

Edited by Jesus Chan

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