Elon at court

Discussion in 'Wall St. News' started by Pekelo, Jan 18, 2019.

  1. Pekelo


    This thread is to chronicle the investors' lawsuit against Elon Musk concerning the infamous "420 funding secured" tweet. Please don't post Tesla related news or your opinions of the cars, etc. here unless it relates to the court case somehow.

    This is the second lawsuit concerning the very same tweet. The first one by the SEC ended in a 20-20 MM fine against Elon and Tesla. In this lawsuit:

    "The plaintiffs are investors who are suing Tesla and Musk in a class-action lawsuit, claiming that Musk made false and misleading statements when he tweeted about plans to take the company private at $420 a share. The complaint alleges that the tweet negatively affected people who purchased Tesla stock soon after it was sent, as they falsely believed he had funding secured to take the company private."


    The current news is this:

    "A court has granted a motion by investors to serve subpoenas to preserve documents to the rapper Azealia Banks and the singer Grimes in a lawsuit against Tesla and Elon Musk, according to new court documents.

    On Tuesday, the US District Court of Northern California granted the motion to serve document-preservation subpoenas against Banks and Grimes (whose real name is Claire Boucher) as well as Business Insider, The New York Times, and Gizmodo.

    Adam M. Apton of Levi & Korsinsky, the firm representing the investors, told Business Insider he planned to serve all five parties subpoenas to preserve evidence."
    Stockolio and Onra like this.
  2. Pekelo


    Elon just never learns...


    " the SEC settled charges with Musk and Tesla over the CEO’s aborted bid to take the company private last fall, with the billionaire remaining at the helm of the company but relinquishing his chairman title and getting slapped with a $20 million fine. As part of the settlement, Musk was supposed to get pre-approval for future tweets.

    “For all the reasons stated, the SEC respectfully requests that the Court enter an order to show cause why Defendant Elon Musk should not be held in contempt of the Court’s October 16, 2018 Final Judgment.”



    Tesla (NASDAQ:TSLA) has taken a 4.3% dip after hours amid Bloomberg reports that the SEC has asked a judge to hold CEO Elon Musk in contempt for violating their deal.

    That's headlines-only news for right now, but the stock is moving.

    The SEC cited an "inaccurate" Feb. 19 tweet about production as evidence.

    On Feb. 19, Musk tweeted "Tesla made 0 cars in 2011, but will make around 500k in 2019," a few hours later adding "Meant to say annualized production rate at end of 2019 probably around 500k, ie 10k cars/week. Deliveries for year still estimated to be about 400k."

    Updated: With Bloomberg details. The tweet about producing 500,000 cars reportedly violates the settlement where Musk was required to seek preapproval from the company for posts that would be material to the company or investors.

    “He once again published inaccurate and material information about Tesla to his over 24 million Twitter followers, including members of the press, and made this inaccurate information available to anyone with Internet access,” the SEC said in court papers. Tesla's now down 4.6% after hours at 6:58 p.m.
    Stockolio likes this.
  3. SEC is going to get owned. Musk isn't even fazed.
    apdxyk likes this.
  4. Pekelo


    Part of the story:

    "His name was Dane Butswinkas and he was Tesla’s General Counsel and he was supposed to review everything that Elon tweeted (per the SEC settlement). He resigned the day after this particular Musk tweet."

    "Money doesn't fix arrogance, it feeds it."
  5. Pekelo


    Yeah, like last time. Elon owned 20 MM to the SEC. :)
  6. Lawyers are jerks anyway. Musk knows what his exposure is, and it's limited.
  7. Pekelo


    Tesla has a new job opening: tweeter-sitter.
    apdxyk likes this.
  8. Lawyers who quit do that do that to protect _their_ image, not their client. Better to be rid of them. Not long TSLA, but I want them to succeed.
  9. Pekelo


  10. Pekelo


    We are waiting for the judge's ruling:


    "But this Monday, Musk's lawyers made a similar request to submit 10 pages of additional arguments by Friday. More than 24 hours have now passed without a peep from the judge.

    Now, approving such a request would take the judge's staff about one minute to type up. It's a paragraph consisting of a sentence or two. However, denying the request would likely take longer to formulate -- and it sounds to me like that's what's going on right now."
    #10     Mar 21, 2019