DETROIT (AP) — The Latest on U.S. securities regulators filing a complaint against Tesla CEO Elon Musk alleging that he made false and misleading statements about plans to take the company private in August.
(all times local):
Tesla and its board of directors are indicating their support for CEO Elon Musk, who federal regulators are seeking to oust over allegations he committed securities fraud.
In a brief joint statement, the electric car maker and its board say they are “fully confident” in Musk, his integrity and his leadership of the company. It says their focus remains on ramping up production of Tesla’s Model 3 and “delivering for our customers, shareholders and employees.”
Earlier Thursday, the Securities and Exchange Commission asked a federal court to oust Musk as Tesla’s chairman and CEO, alleging in a complaint that he committed securities fraud with false statements in August about plans to take the company private.
The Wall Street Journal reports that Tesla CEO Elon Musk was close to settling with U.S. securities regulators over allegations surrounding his plans to take the company private, but backed out at the last moment.
The Journal reports that the Securities and Exchange Commission was prepared on Thursday to file a settlement approved by Musk. But the paper reports that Musk’s lawyers later informed the agency that they were no longer interested in following through with the agreement. It cites people familiar with the matter.
Tesla did not immediately respond to a request for comment on the report.
On Thursday the SEC instead asked a federal court to oust Musk as chairman and CEO of Tesla, alleging in a complaint that he committed securities fraud with false statements in August about plans to take the electric car maker private.
U.S. securities regulators have filed a complaint against Tesla CEO Elon Musk alleging that he made false and misleading statements about plans to take the company private in August.
The Securities and Exchange Commission says in the complaint filed Thursday that Musk falsely claimed in an Aug. 7 statement on Twitter that funding was secured to take the company private at $420 per share.
The complaint filed in the U.S. District Court in Manhattan says that Musk had not discussed or confirmed key deal terms including price with any funding source.
The commission is asking the court for an order stopping him from making false and misleading statements along with repayment of any gains as well as civil penalties.
A message was left Thursday seeking comment from Tesla.
Copyright © 2019 The Associated Press. All rights reserved. This material may not be published, broadcast, written or redistributed.