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Elon Musk
Sued by SEC
For ‘Going Private’ Tweet
9/27/2018 2:19 PM PDT
Breaking News
Elon Musk just got hit again with a lawsuit from Uncle Sam, who’s pissed about the tweet he fired off about Tesla last month … and if the government gets its way it could cost Musk his job.
The Securities Exchange Commission is suing Tesla’s CEO, claiming he misled investors after he tweeted in August … “Am considering taking Tesla private at $420. Funding secured.” The SEC’s lawsuit includes several other tweets, such as … “My hope is *all* current investors remain with Tesla even if we’re private. Would create special purpose fund enabling anyone to stay with Tesla.”
According to the docs, obtained by TMZ, Musk recklessly posted the tweets because he’d only had preliminary conversations about the possibility of going public, and did not consult with his board of directors about tweeting it. As a result, the SEC contends the information was misleading to investors who may have reacted.
The federal agency says his tweets caused significant confusion and disruption in the market for Tesla’s stock, and ended up hurting investors’ wallets.
The SEC’s going for Elon’s throat … because they want to “prohibit him from acting as an officer or director” of any public company. The agency also wants a court to prevent him from further misleading tweets and to force him to pay back any profits he might’ve made as a result.