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SEC Sues Elon Musk, Seeks Removal From Tesla As CEO


The following is an excerpt from ANDREW KROK, ABRAR AL-HEETI | September 27, 2018 | cnet.com |

In August, reports circulated that the US Securities and Exchange Commission had been looking into Elon Musk's tweet that he could take Tesla private at $420 per share, and that he had "funding secured" for such a decision. Now, it appears that probe may have taken the next step.

The SEC has filed a lawsuit against Elon Musk for securities fraud, according to documents filed in Manhattan federal court. Representatives from Tesla and the SEC didn't immediately respond to requests for comment.

"Musk knew or was reckless in not knowing that each of these statements was false and/or misleading because he did not have an adequate basis in fact for his assertions," the SEC complaint says of Musk's tweets about the possibility of taking Tesla private.

"Musk's false and misleading public statements and omissions caused significant confusion and disruption in the market for Tesla's stock and resulting harm to investors," the complaint adds.

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