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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInTesla Confirms Probe Into Executive Perks and Related-Party Deals – WSJ
Federal prosecutors have sent subpoenas to Tesla seeking information about executive perks, deals with related parties and decisions to hire or fire employees, the electric-vehicle maker disclosed Monday. Tesla’s quarterly report to investors confirmed the investigation previously reported by The Wall Street Journal. The Manhattan U.S. Attorney’s Office is scrutinizing personal benefits that Tesla may […]
Tesla shareholder lawyers defend $229 million fee bid in board pay case | Reuters
Shareholder lawyers who want to collect about $229 million in fees for forcing Tesla board members to surrender nearly $920 million in compensation fired back this week at the company for asserting that they are entitled to no more than $63.5 million. In a new brief, plaintiffs lawyers from Bleichmar Fonti & Auld, Fields Kupka […]
Justice Department Probe Scrutinizes Elon Musk Perks at Tesla Going Back Years – WSJ
Federal prosecutors are scrutinizing personal benefits Tesla may have provided Elon Musk since 2017—longer than previously known—as part of a criminal investigation examining issues including a proposed house for the chief executive. The U.S. Attorney’s Office for the Southern District of New York also has sought information about transactions between Tesla and other entities connected to […]
DOJ, SEC Investigate Tesla Over Secret Glass House Project – WSJ
Manhattan federal prosecutors are investigating Tesla’s use of company funds on a secret project that had been described internally as a house for Chief Executive Elon Musk, people familiar with the matter said. The U.S. Attorney’s Office for the Southern District of New York has sought information about personal benefits paid to Musk, how much […]
Tesla Investors to Get $12,000 Each From Musk’s SEC Deal
A group of Tesla Inc. investors stands to recover an average of about $12,000 a head for losses they incurred from Elon Musk’s famous 2018 tweet that he had “funding secured” to take the carmaker private at $420 a share — and then didn’t. The US Securities and Exchange Commission aims to pay the investors […]
Payouts expected from Elon Musk’s SEC settlement | Reuters
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 […]
Musk Gets Away With Mischief – Bloomberg
But is that right? The case was actually about whether investors bought Tesla stock at inflated prices because they were deceived by Musk’s tweets, and in evaluating that question you might want to think about what Twitter is, and who Elon Musk is. If Tim Cook had put out an Apple Inc. press release in […]
‘Teflon’ Elon Wins Again as Jury Rejects Tweet Fraud Claims
Though many executives testified, the trial was all about Musk. A one point while the billionaire was on the stand, the lead lawyer for the shareholders mistakenly referred to Musk as “Mr. Tweet,” a name he seemed to enjoy and briefly embraced as the handle for his Twitter account. Musk’s defense asked jurors to imagine […]
Elon Musk Found Not Liable in Trial Over Tweets Proposing to Take Tesla Private – WSJ
A jury rejected investor claims that Elon Musk violated federal securities law when he tweeted in 2018 about potentially taking Tesla Inc. increase; green up pointing triangle private, handing a major win to the billionaire chief executive. The nine-person jury said the investors who brought the class-action case failed to prove that Mr. Musk hurt […]
Elon Musk Never Jokes – Bloomberg
What. What. Look, again, my assumption was always that the SEC has a videotape of Musk saying it was a weed joke. Perhaps I am wrong. But what if I’m right! If you are a plaintiffs’ lawyer in this case, you had better be calling the SEC for that videotape. If you are the SEC — and […]