Monthly Archives: October 2022

Musk Says $50 Billion Tesla Pay Deal Is Justified by Electric-Car Maker’s Surge – Bloomberg

Tesla Inc.’s decision to give Chief Executive Officer Elon Musk a pay package that could be worth more than $50 billion wasn’t excessive given the electric-car maker’s stratospheric rise in value over the last decade, his lawyers said in a court filing. Musk, the world’s richest person, must face a Delaware judge at a trial Nov. 14 to counter accusations…

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Accounting Errors to Cost Executives Their Bonuses Under SEC Rule – WSJ

Regulators will make public companies take back executives’ incentive pay if they find significant errors in financial statements, aiming to improve corporate accountability at a time of rising shareholder discontent over pay practices. The Securities and Exchange Commission voted 3-2 Wednesday to complete the so-called clawback rule, with all Democrats approving and Republicans dissenting. Required by the 2010 Dodd-Frank Act…

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Private Funds Remain a Top Priority for the SEC in 2022: A Review of Recent Cases and Their Implications for Private Fund Managers

Late last year, Securities and Exchange Commission (SEC) Chair Gary Gensler warned private fund managers that they should be prepared for increased regulatory scrutiny. Shortly thereafter, in February 2022, the SEC announced a historically sweeping set of rule proposals focused on the private fund industry. These proposals have coincided with a wave of enforcement actions impacting private fund managers, which…

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SEC Commissioner Peirce Continues To Object To Various Aspects Of Nearly Every FCPA Enforcement Action – FCPA Professor

All told, as an SEC Commissioner, Peirce has voted on 42 corporate FCPA enforcement actions. In 10 of the actions (approximately 25%) Peirce voted not to approve. In 25 of the actions (approximately 60%), Peirce objected to certain aspects of the enforcement action. In other words, Peirce has objected (in whole or in part) to approximately 85% of corporate FCPA…

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Elon Musk Faces Investors in Court Over Tweet to Take Tesla Private – Bloomberg

Investors who filed suit over Elon Musk’s 2018 tweet stating that he was considering taking Tesla Inc. private are facing a crucial test in court. A federal judge in San Francisco will hear arguments Tuesday over whether Musk was intentionally deceitful when he unveiled the proposal to his millions of Twitter followers and said “funding secured.” The class-action suit is…

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Andreessen Horowitz Went All In on Crypto at the Worst Possible Time – WSJ

As cryptocurrency prices soared last year, no investor bet more on the sector than Andreessen Horowitz. The storied venture-capital firm had developed a reputation as Silicon Valley’s greatest crypto bull, thanks largely to a 50-year-old partner named Chris Dixon who was one of the earliest evangelists for how the blockchain technology powering cryptocurrencies could change business. His unit was one…

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SEC’s Yuga Labs Probe Won’t Be Final Word on If NFTs Are Securities | Law.com

Since then, the world has seen NFTs endorsed by artists, wielded by large corporations, and inevitably, targeted by regulators. The arguably most famous NFTs—the apes—had managed to avoid regulatory attention until last week when the U.S. Securities and Exchange Commission opened a probe into Yuga Labs, the owner of not only the aforementioned Bored Ape Yacht Club, but of a…

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