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DETROIT (AP) – US securities regulators say they have legal powers to subpoena tesla and CEO elon musk about her tweets and this Musk‘ move to ditch 2018 court settlement her Pre-approved tweets do not apply.
this Securities and Exchange Commission He also publicly announced that he was investigating Musk’s tweets on November 6, 2021, asking if he had asked his followers. he is should sell 10% her tesla share. this commission The administrative court confirmed that he had issued a subpoena. Musk and tesla They comply with the disclosure controls in the 2018 contract.
this commission It is also investigating whether tesla Compliance with disclosure controls is accurately disclosed in public filings with the agency.
Details of the investigation were released on Tuesday. SECMusk’s response to a motion by a Musk lawyer demanding that a Manhattan federal judge rescind a subpoena and rescind the 2018 settlement. Musk‘s tweets must be pre-approved by a company attorney.
Musk lawyer Alex Spiro also claimed SEC used the court agreement to “infringe on Mr. Musk’s First Amendment rights and place pre-emptive restrictions on his speech.”
this commission claims that the subpoenas are legal, and Musk not following proper legal procedure to challenge them. SEC lawyer Melissa Armstrong called Muskpointed out that the challenge was “meaningless” and Musk and tesla agreed to have her tweets pre-approved by other company officials.
“Courts have long been ‘congress’ SEC has broad authority to conduct investigations into possible violations of federal securities laws and to request the presentation of evidence relevant to such investigations,” Armstrong wrote.
A sealed subpoena comes from an official order. commission to allow investigation. They ask about all written communications about the November 6 tweets and whether they were shown to them. tesla lawyers for pre-approval.
tesla Armstrong wrote that he did not object to the subpoena and produced documents. However Muskthe lawyer told SEC he is he is will not submit any documents regarding its pre-approval. her tweets, him said the answer.
Shortly after the tweets about the stock sale in November, Musk began selling his shares and he is He wrote on Twitter that the sale would pay off his tax obligations on stock options. Analysts forecast her Tax liability between $10 billion and $15 billion.
Until now he is It has sold more than 15 million shares worth roughly $16.4 billion. With some sales in late December, Musk Close to 10% sell.
In a motion submitted to the US District Court in Manhattan in February, Spiro claims that Musk’s subpoena has no legal basis. He also says SEC No action can be taken on Musk’s tweets without court permission.
The whole disagreement stems from Musk and Musk’s agreement in October 2018. tesla Each agreed to pay a $20 million fine over Musk’s tweets about having money to buy. tesla Exclusive at $420 per share.
Funding was far from secured, and the electric vehicle company remains publicly traded, but teslaThe share price skyrocketed. The deal marked management changes, including the removal of Musk as chairman of the board, as well as pre-approval of his tweets.
Spiro’s proposal prompts Nathan to cancel the deal. SEC He uses it and “close to unlimited resources” to comfort Musk’s speech. he says Musk when you sign the deal tesla was a less mature company and SEC The action jeopardized the company’s finances.
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