SEC Files Lawsuit Against Tesla CEO Elon Musk For Misleading Investors
By Brittany De Lea, Fox Business // September 28, 2018
ABOVE VIDEO: SEC lawsuit against Elon Musk could spell trouble for Tesla.
(FOX BUSINESS) – The Securities and Exchange Commission (SEC) filed a lawsuit on Thursday against Tesla CEO Elon Musk claiming securities fraud, court records show.
The lawsuit references alleged “false and misleading” statements made by Musk about taking the publicly-traded company private. It also claims he “knew or was reckless in not knowing” that his statements were false and/or misleading.
FOX Business reported last month that the SEC ramped up its investigation into the automaker after Musk tweeted that he was considering taking the company private at $420 per share and that funding had been “secured.”
That news sent shares soaring.
Musk later revealed in a blog post that there was no concrete funding deal in place and in fact he was still openly talking to investors, which sparked speculation that he was trying to bump the stock price.
The billionaire businessman later decided that it was in the company’s best interest to remain private.
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