Investors who lost money when Elon Musk tweeted about taking his electric car company Tesla private may soon collect from a $42.3 million fund set up when Musk settled federal securities fraud charges.
In a Wednesday night court filing, the U.S. Securities and Exchange Commission said 3,350 eligible claimants will share in a $41.53 million payout, recouping 51.7% of their losses. Other sums will be held back for fees, taxes and expenses.
The “fair fund” was created under a settlement arising from Musk’s August 2018 tweet that he had “funding secured” for a Tesla buyout at a premium.
He did not, and many investors lost money during the resulting volatility in Tesla’s stock price.
Source: Payouts expected from Elon Musk’s SEC settlement | Reuters
