Manhattan Judge To Decide On Litigation Against CEO Musk
Elon Musk is famous for his controversial tweets. One such tweet has got him into serious trouble with the SEC. A federal judge will decide whether Musk should be held in contempt of court on April 4.
The Securities and Exchange Commission has entered into a lawsuit with Musk. The lawsuit is set for a hearing on April 4. The decision will be taken in the Manhattan courts by the lawyers of Elon Musk and the SEC next week.
The SEC has held Elon Musk in contempt over the violation of the settlement deal. Judge Alison Nathan is dealing with the issue.
The Tesla CEO had said on Feb 19 that Tesla will make 500 k cars in 2019. However, a follow-up tweet was posted just hours later stating that Tesla will be actually delivering just 400,000 cars for the year. This tweet has led Musk into trouble.
Earlier in August, Musk had made a tweet regarding his company saying that he was taking his company private and had the fund secured. The SEC had sued him saying that he was providing false information to the public, especially to his shareholders. Tesla and Musk had to pay a fine of $20 million each and Mush had to step down from being the chairman of Tesla.
Further, in October, the SEC had asked Tesla to establish a board committee to give pre-approval for his posts on Twitter. He has over 24 million followers on Twitter and regulators claim that he is providing inaccurate information regarding his company to his followers.
The February post had not been monitored by the board, and he had not received any pre-approval for his tweet, complains the SEC.
Meanwhile, Musk says that the SEC request has controlled his right to free speech which is a constitutional right. His lawyers further argue that the tweet did not hold any material information about his company.