Teesha –
Documents obtained by the Wall Street Journal tells that Elon Musk twice violated the court order meant to prevent the Tesla CEO from using Twitter to manipulate the stock Market.
As per the source, in a Lawsuit the Securities and Exchange Commission SEC alleged that Musk committed fraud by tweeting about a potential buyout of his company in August 2018.
In his defence, Musk claimed that he was considering taking the company private and that he had secured funding to do so. It was reported in 2018, that the Saudi Arabia Sovereign Wealth Fund was the source of the funding.
Musk wrote post the incident, “I left the July 31st meeting with no question that a deal with the Saudi sovereign fund could be closed, and that it was just a matter of getting the process moving. This is why I referred to “funding secured” in the August 7th announcement.”
The sum of $20 million was paid by Musk and Tesla to settle the SEC suit and in addition Musk had to step down as the CEO, further it was agreed upon that Musk’s tweets would be reviewed by corporate lawyers before being posted.
However, in May 2020 again SEC warned Tesla that the company failed to comply with the rules and procedures despite of repeated violations by Mr. Musk.
The Letter so obtained by Wall Street Journal, added that “Tesla has abdicated the duties required of it by the court’s order.”