SEC Sues Tesla CEO Elon Musk Over Tweet About Taking Company Private
PALO ALTO (CBSLA/AP) -- 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.
In response, Musk released the following statement: "This unjustified action by the SEC leaves me deeply saddened and disappointed. I have always taken action in the best interests of truth, transparency and investors. Integrity is the most important value in my life and the facts will show I never compromised this in any way."
Shares fell as much as 10 percent on news of the SEC complaint.
(© Copyright 2018 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.)