U.S. Judge approves payouts from Elon Musk's SEC settlement

  • 📰 Reuters
  • ⏱ Reading Time:
  • 32 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 16%
  • Publisher: 97%

Business Business Headlines News

Business Business Latest News,Business Business Headlines

A federal judge on Friday authorized the payout of $41.53 million to investors who lost money when Elon Musk tweeted about taking his electric car company Tesla private.

NEW YORK, Sept 1 - A federal judge on Friday authorized the payout of $41.53 million to investors who lost money when Elon Musk tweeted about taking his electric car company TeslaPayouts will come from a "fair fund" created under a settlement between Musk and the U.S. Securities and Exchange Commission, arising from Musk's August 2018 post on Twitter that he had "funding secured" for a Tesla buyout.

Musk did not in fact have funding lined up, and many investors suffered losses because the tweet made Tesla's stock price more volatile. The fund was originally $40 million, with Musk and Tesla each contributing $20 million, and grew to $42.3 million with interest payments. About $773,000 is being held back for taxes and other expenses.would share the $41.53 million payout, recouping 51.7% of their losses. The average payout would be about $12,400.

The settlement also included a consent decree where Musk gave up his role as Tesla's chairman and agreed to let a Tesla lawyer approve some of his tweets.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Tesla facing DOJ, SEC probes over reported plans to build Elon Musk a large glass houseTesla is reportedly facing two new federal probes over possible misuse of company resources by or for the personal benefit of CEO Elon Musk.
Source: CNBC - 🏆 12. / 72 Read more »

Tesla reportedly facing DOJ, SEC probes over plans to build Elon Musk a large glass houseTesla is reportedly facing two new federal probes over possible misuse of company resources by or for the personal benefit of CEO Elon Musk.
Source: NBCNewYork - 🏆 270. / 63 Read more »

Elon Musk’s ‘secret house’ project spurs fed probe of TeslaTesla board members had investigated whether company resources were misused on the effort, the Wall Street Journal reported.
Source: nypost - 🏆 91. / 67 Read more »