Elon Musk’s SEC Settlement Could Have Gone So Much Worse
Legal experts say the penalties that the SEC doled out to Elon Musk for “false and misleading” statements made on Twitter could have been much, much worse for Musk and his car company, reports Wired.
Reporter Aarian Marshall writes that “Musk and Tesla will have to each write $20 million checks for the misadventure, which will be disbursed to investors harmed during the wild market swings that occurred after Musk’s tweets.” Musk had tweeted that he planned to take Tesla private and funding had been secured.
“Not settling with the SEC could have led to a more dire outcome,” Marshall explains. “The SEC’s initial suit sought to bar the CEO from becoming an officer or director for any public company, perhaps for life.”