‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInMusk’s tweets enter the SEC | FT Alphaville
FT Alphaville believes this is the first time an SEC filing has featured a screenshot of tweets as part of a key announcement to shareholders. Now, some may just chalk this up to as yet another demonstration of the on-going governance conundrum that is Tesla Motors, and its affiliated businesses. Sure, screenshotting a social media […]
Lucid Motors Snags General Counsel From Rival Tesla | Law.com
Electric car maker Lucid Motors Inc. has picked up a new general counsel from rival Tesla Inc.’s legal department, which still remains without a named top lawyer after losing three general counsel last year. Lucid announced this week that it hired former Tesla deputy general counsel Jonathan Butler to serve as the Newark, California-based company’s general […]
Judge shelves Tesla shareholder lawsuit to stop Elon Musk from tweeting – MarketWatch
A Delaware judge has denied a request by attorneys for Tesla shareholders to pursue a lawsuit seeking to prevent CEO Elon Musk from using his personal Twitter account to disseminate information regarding the electric vehicle and solar panel manufacturer. Vice Chancellor Joseph Slights III ruled Tuesday that shareholder attorneys had not demonstrated a sufficient reason […]
In Lieu of D&O Insurance, Musk Agrees to Provide Tesla with “Coverage” | The D&O Diary
On April 28, 2020, Tesla filed with the SEC an amendment to its annual 10-K filing (here). The amendment addresses a number of corporate governance and executive compensation issues. In a section of the filing with the heading “Director Independence,” the company discloses that: Tesla determined not to renew its directors and officers liability insurance […]
Musk’s “Take Private” Tweets Held Actionable | The D&O Diary
In a now infamous August 7, 2018 post on his Twitter account, Tesla CEO Elon Musk stated that he was “considering taking Tesla private at $420. Funding secured.” This post and several subsequent messages ultimately were the subject of an SEC enforcement proceeding (later settled) as well as several securities class action lawsuits (later consolidated). […]
Tesla Fields a Fresh SEC Inquiry After Another Probe Ends
On Dec. 4, the same day the agency closed its second investigation into the electric-car maker in as many years, the SEC sent a subpoena seeking information on a fresh set of matters, Tesla disclosed in a regulatory filing Thursday. The regulator is looking into “certain financial data and contracts including Tesla’s regular financing arrangements,” […]
Elon Musk’s tweets prompt SEC official to call for guidelines on CEOs’ social media use – Los Angeles Times
Robert Jackson, one of the Securities and Exchange Commission’s four commissioners, said the agency should consider publishing new guidance on chief executives’ use of social media platforms such as Twitter and Facebook, in the wake of controversies involving Tesla founder Elon Musk. “Without prejudging a particular matter, it might be time for us to come […]
Plaintiff’s Firm Seeks SEC Documents in Elon Musk Investigation | National Law Journal
Levi & Korsinsky petitioned the U.S. District Court for the District of Columbia to compel the SEC’s cooperation with a Freedom of Information Act request related to one of its class action cases. Levi & Korsinsky attorneys represent a group of Tesla investors who claim they were duped when Musk tweeted plans to take the company private. The […]
Judge approves agreement between Elon Musk and SEC over Twitter use
A U.S. Securities and Exchange commissioner on Tuesday criticized a settlement between the regulator and Tesla CEO Elon Musk over his use of Twitter. The head of the electric car maker reached a deal with the SEC on Friday, agreeing to submit his public statements about the company’s finances and other topics to vetting by […]
Elon Musk and S.E.C. Reach New Accord, Lifting Cloud Over Tesla – The New York Times
A revised agreement between Mr. Musk and the Securities and Exchange Commission, filed in federal court in Manhattan on Friday, spells out just when Mr. Musk must “obtain the preapproval of any experienced securities lawyer” employed by Tesla before posting on Twitter or other social media. The list includes comments about the electric-car company’s financial […]