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Musk faces contempt
The SEC claimed on Monday that a Feb. 19 tweet by Musk violated the settlement when he wrote that “Tesla made 0 cars in 2011, but will make around 500k in 2019.” The deal with the agency required him to seek pre-approval from the company for social media posts and other written communication that would be material to the company or investors.
“He once again published inaccurate and material information about Tesla to his over 24 million Twitter followers, including members of the press, and made this inaccurate information available to anyone with Internet access,” the SEC said in court papers filed in Manhattan federal court.
Tesla shares plunged as much as 5.4 percent as of 6:30 p.m. Monday in New York. The stock was already down 10 percent this year through the close of regular trading.
The SEC’s move puts Musk in fresh legal peril, including the possibility that he’ll be barred from running Tesla or any other public company, said Charles Elson, director of the John L. Weinberg Center for Corporate Governance at the University of Delaware. A finding of contempt by the judge would prompt a new round of negotiations over penalties among the SEC, Tesla and Musk.
https://www.bloomberg.com/news/articles/2019-02-25/elon-musk-faces-u-s-contempt-claim-for-violating-sec-accord