Every day, a new verbal attack is followed by a counterattack from the other side. None of the main characters seem to want to turn the temperature down.
And things don’t seem to be getting any better, on the contrary.
The confrontation between Elon Musk and the Securities and Exchange Commission (SEC) has reached levels of no return.
Tesla (TSLA) – Get a Tesla Inc . report The CEO accuses the SEC of leaking information to his harm. at Message His lawyer, the world’s richest man, addressed him to New York Judge Alison Nathan, on Monday, alleging that these leaks, which interfere with the framework of the Federal Agency’s investigation into Tesla, are acts of retaliation after the recent criticism leveled against him. SEC.
“Based on information and belief, having submitted a February 17, 2022 letter to this Court regarding the Commission’s conduct, at least one SEC member responded by leaking certain information regarding its investigation,” Alex Shapiro, a SEC member Alex Spiro wrote. . Musk’s lawyers. “This leak is emblematic of the inappropriate retaliatory behavior that caused my letter: The Securities and Exchange Commission is retaliating against Mr. Musk and Tesla, without responding to the constraints of principle or law in doing so.”
Tesla directed its complaints to the office of the inspector general of the Saudi Electricity Company
Spiro did not name the SEC “staff” who allegedly leaked information about Musk. It also did not say what the information is. But the lawyer notes that he referred the matter to “the Office of the Inspector General of the Saudi Electricity Company.”
He added, “No denial has yet been imminent. Until the court is informed of the premises and is able to address the alleged misconduct before it, we are now respectfully seeking official assurances that the commission has not leaked the investigation details that violate its rules and policies and is acting in accordance with the law.”
What prompted the eccentric and charismatic CEO to make such accusations, especially fueling the fire of an already unprecedented situation?
On February 17, Musk reignited hostilities with the Securities and Exchange Commission, with which he already broke up in the summer of 2018 over what would become the TweetGate case. Alex Spiro’s attorney The Supreme Education Council accused By targeting him and the clean energy car maker in a “severe” investigation aimed at restricting his right to freedom of expression.
Musk also said that the Securities and Exchange Commission had neglected its duties to transfer $40 million to shareholders that Tesla and Musk had previously paid fines to settle securities fraud charges.
The Securities and Exchange Commission, through its attorney, responded the next day to Musk. Stephen Buchholz, an attorney for the Securities and Exchange Commission, said the agency is already making progress with the task of disbursing $40 million to shareholders.
“We note that Mr. Spiro’s letter is the first time we have seen Tesla and Mr. Musk express any concerns about the distribution of penalties that Mr. Musk and Tesla have paid to settle this litigation,” Buchholz wrote. Message To Judge Nathan on Friday.
Adding: “Barring any unforeseen circumstances, distributions officers expect to submit the proposed distribution plan for court approval by the end of March 2022.”
Tweet you don’t want to disappear
The Tweetgate issue began on August 7, 2018, with this post by Musk on his Twitter account: “I’m thinking about making Tesla private at $420. Funding secured.”
The tweet shook Tesla stock. The Securities and Exchange Commission filed a complaint against Musk.
A settlement was reached and announced on September 29, 2018. It required Musk to step down as Tesla’s president. Tesla and Musk agreed to pay $40 million in fines. Tesla also agreed that the company’s lawyers would pre-approval of tweets containing material information about the company.
Two new independent directors have been appointed.
But Tesla revealed, on February 7, in a regulatory filing, that Subpoena received from the Securities and Exchange Commission in November, requesting information regarding the settlement, which mandated that the company examine Elon Musk’s tweets regarding information that could affect the stock.
“The Securities and Exchange Commission (SEC) has issued subpoenas to Tesla in connection with Elon Musk’s previous statement that he is considering taking Tesla into private. The private investigation has been dissolved and closed with a settlement concluded with the SEC in September 2018 and as explained in April 2019 in an amendment “.
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