SEC

DETROIT — U.S. securities regulators countered Tesla CEO Elon Musk's contempt-of-court defence Monday night, writing in court papers that he brazenly disregarded a federal judge's order and that one of his arguments "borders on the ridiculous."Lawyers for the Securities and Exchange Commission, in a response to Musk, wrote that when the contempt motion was filed in February, Musk had not had a single tweet approved by a company lawyer, violating a requirement of a court-approved settlement order.The October securities fraud settlement stemmed from tweets by Musk in August about having the money to take Tesla private at $420 per share. But Musk didn't have the funding secured. Tesla and Musk each had to pay $20 million in fines and agree to governance changes that included Musk's removal as chairman.SEC lawyers led by Cheryl Crumpton wrote in a response to Musk's defence that he interprets the settlement order as not requiring pre-approval unless Musk decides the tweets are meaningful to investors. The agency said Musk's argument that tweeting about car production forecasts on Feb. 19 wasn't material information is nearly ridiculous. "His interpretation is inconsistent with the plain terms of this court's order and renders its pre-approval requirement meaningless," the lawyers wrote.U.S. District Judge Alison Nathan in Manhattan will decide if Musk is in contempt and whether he should be punished. The SEC said no hearing is necessary on the matter "because there appear to be no disputed issues of material fact."Musk's lawyers wrote last week that the Feb. 19 tweet merely restated previously approved disclosures on electric car production. They wrote that the tweet, which was published after the markets closed, neither revealed material information, nor altered the mix of data available to investors.The lawyers also accused the Securities and Exchange Commission of censorship and of violating Musk's First Amendment rights by imposing a prior restraint on his speech.But the SEC lawyers wrote that submitting statements for approval does not mean Musk is prohibited from speaking. "As long as a statement submitted for pre-approval is not false or misleading, Tesla would presumably approve its publication without prior restraint on Musk," they wrote. The SEC also wrote that Musk waived any First Amendment challenge to the order when he agreed to it.Musk's lawyers also argued that the SEC's motion for contempt is an over-reach that exceeds its authority. But the SEC said enforcement of the order is up to the judge, who has broad powers to enforce court orders.Also Monday, Musk lawyer, former Enron prosecutor John C. Hueston of Newport Beach, California, asked the court for permission to file another response to the SEC, this one by Friday.In a one-page letter to the judge, Hueston said the SEC raised new allegations in its reply, which he contends is improper. He called the new assertions "unsupported" and asked to submit documentation about negotiations with the agency "which undermines the newly-presented interpretation the SEC sets forth in its reply."Monday's filing said the Feb. 19 tweet was different from prior public disclosures by the company. Also, Musk has regularly published tweets with "substantive information" about the company and its business, the SEC contended.Musk's 13-word Feb. 19 tweet said that Tesla would produce around 500,000 vehicles this year, but it wasn't approved by the company's "disclosure counsel," the SEC has said.The lawyer quickly realized it and arranged a meeting with Musk to write a correction. The company would make vehicles at a rate of 500,000 per year, but it wouldn't produce a half-million in 2019.Musk's response by Hueston said that the settlement allows Musk "reasonable discretion" to determine if his communications would require the lawyer's approval. In the case of the Feb. 19 tweet, Musk determined that it did not.Legal experts say it's unlikely that Musk will be punished severely, but the commission wants to get on the record that Musk violated the terms, to prepare for any future violations.The tweet was posted and corrected after U.S. markets had closed, but experts say regulators don't care much about that because stocks are traded nearly around the clock. Tesla's stock rose by just $1.10, or less than 1 per cent, the next day.Tom Krisher, The Associated Press
The Canadian Press
BUSINESS
SEC Urges Court To Hold Elon Musk In Contempt Over Tweets
By Tom Krisher, AP
Regulators said the Tesla CEO's defense "borders on the ridiculous" in a filing late Monday.
Bottles of Johnson's baby powder are displayed in a store in New York City, U.S., January 22, 2019. REUTERS/Brendan McDermid
Brendan McDermid/Reuters
BUSINESS
Johnson & Johnson Subpoenaed By DOJ, SEC Over Baby Powder Safety Concerns
By Chris Kirkham, Reuters
The subpoenas are related to litigation involving alleged asbestos contamination in Johnson & Johnson's Baby Powder product line.
SpaceX founder Elon Musk pauses at a press conference following the first launch of a SpaceX Falcon Heavy rocket at the Kennedy Space Center in Cape Canaveral, Florida, U.S., February 6, 2018. REUTERS/Joe Skipper
Joe Skipper / Reuters
BUSINESS
Elon Musk To Resign As Tesla Chairman In SEC Settlement
By Sebastian Murdock
Musk will still keep his title of CEO.
SpaceX founder Elon Musk speaks at a press conference following the first launch of a SpaceX Falcon Heavy rocket at the Kennedy Space Center in Cape Canaveral, Florida, U.S., February 6, 2018. REUTERS/Joe Skipper
Joe Skipper / Reuters
BUSINESS
Elon Musk Tweets Prompt Criminal Probe By Justice Department
By Ryan Grenoble
The Tesla CEO tweeted last month he had secured funding to take the company private.
SQUAWK BOX -- Elizabeth Holmes, Theranos CEO and the world's youngest self-made female billionaire, in an interview on September 29, 2015 -- (Photo by: David Orrell/CNBC/NBCU Photo Bank via Getty Images)
CNBC via Getty Images
BUSINESS
Theranos Founder Elizabeth Holmes Charged With 'Massive Fraud' By SEC
By Ryan Grenoble
The biotech company Holmes started was once worth $9 billion.
An employee walks through the parking lot of a Marathon Petroleum Corp. Speedway gas station in Huntington, West Virginia, U.S., on Tuesday, Oct. 18, 2016. Marathon Petroleum Corp. is scheduled to release earnings figures on October 27. Photographer: Luke Sharrett/Bloomberg via Getty Images
Bloomberg via Getty Images
POLITICS
Companies Are Disclosing How Much Less They Pay Workers Than Executives
By Arthur Delaney and Dave Jamieson
And some firms seem a little embarrassed.
conceptual image of one hundred US dollar bill in clody sky
jokerpro via Getty Images
POLITICS
The Next Financial Crisis -- Not If, But When
By TomDispatch, Editorial Partner
This article originally appeared at TomDispatch.com. To receive TomDispatch in your inbox three times a week, click here
Jared Kushner
Reuters/Yuri Gripas
POLITICS
Report: SEC Probing Kushner Company Role In Visas-For-Money Program
By Mary Papenfuss
Chinese who invest in Kushner company real estate deals can get green cards.
empty gallery, space, white gallery, exhibit, display, choice, art gallery, gallery, simplicity, finance, business presentation, imagination, contemplation, auction, art, choice, white space, artwork, canvas, viewing, location, formal, business, office, compare, studio shot, standing, looking, wonder, marble floor,modern, exhibit, show room, display
Paper Boat Creative via Getty Images
BUSINESS
Destructive Stock Buybacks — That You Pay For
By Ralph Nader, Contributor
Consumer advocate, lawyer and author
Burning trillions of dollars for the hyper enrichment of a handful of radical corporate state supremacists wasn’t what classical capitalism was supposed to be about.
The U.S. Supreme Court building facade is pictured in Washington, DC, U.S. on March 29, 2016. REUTERS/Gary Cameron/File Photo
Gary Cameron / Reuters
POLITICS
Supreme Court To Review Scope Of Dodd-Frank Whistleblower Protections
By Sarah N. Lynch, Reuters
The case hinges on the SEC’s whistleblower protection rules required by the 2010 Dodd-Frank Wall Street reform law.
U.S. Representative Chris Collins is interviewed during the 2017 "Congress of Tomorrow" Joint Republican Issues Conference in Philadelphia, Pennsylvania, U.S. January 25, 2017. REUTERS/Mark Makela
Mark Makela / Reuters
POLITICS
Chris Collins Is A Good Example Of Why Americans Think Congress Is Corrupt
By Ben Walsh
The New York congressman's stock pitch to colleagues "just reeks of insider trading," a watchdog says.
Michael Piwowar, Commissioner of the U.S. Secuirites and Exchange Commission, speaks at the Milken Institute Global Conference in Beverly Hills, California, U.S., May 2, 2016. REUTERS/Lucy Nicholson
Lucy Nicholson / Reuters
POLITICS
Sweeping Changes At SEC Under New Leadership
By Laura Anthony, Esq., Contributor
Founding Partner of Legal & Compliance, LLC, a National Corpor...
Expect sweeping changes in procedural operations, enforcement and overall philosophy at the Securities and Exchange Commission
UNITED STATES - JULY 15: From left, Sen. Mark Warner, D-Va., and Sen. Jon Tester, D-Mont., talk before the start of the Senate Banking, Housing and Urban Affairs Committee hearing on 'The Semiannual Monetary Policy Report to the Congress' on Tuesday, July 15, 2014. (Photo By Bill Clark/CQ Roll Call)
Bill Clark via Getty Images
POLITICS
Meet The New Class Of Wall Street Democrats
By Zach Carter
They just voted for a Trump nominee who worked as the bailout lawyer for Goldman Sachs.
U.S. President Donald Trump listens while meeting with women small business owners in the Roosevelt Room of the White House in Washington, D.C., U.S., on Monday, March 27, 2017. Investors on Monday further unwound trades initiated in November resting on the idea that the election of Trump and a Republican Congress meant smooth passage of an agenda that featured business-friendly tax cuts and regulatory changes. Photographer: Andrew Harrer/Bloomberg via Getty Images
Bloomberg via Getty Images
POLITICS
Donald Trump's SEC Pick Deleted His Wall Street Bio. Here's What It Said.
By Zach Carter
What starts with the letter "G" and ends with "oldman Sachs"?
UNITED STATES - JULY 21: Sen. Thom Tillis, R-N.C., questions the witness during the Senate Armed Services Committee hearing on the nomination of Army Gen. Mark Milley to be Army chief of staff on Tuesday, July 21, 2015. (Photo By Bill Clark/CQ Roll Call)
Bill Clark/CQ Roll Call
POLITICS
Republican Senator Hails Goldman Sachs As A Champion Of 'The Little Guy'
By Zach Carter
He's also into Atlas Shrugged. Go figure.
VIDEOS
Who Is SEC Chair Nominee Jay Clayton?
Donald Trump has nominated Wall Street attorney Jay Clayton as chairman of the Securities and Exchange Commission.
US President Donald Trump looks on after signing a bill increasing funding for NASA in the Oval Office at the White House in Washington, DC, on March 21, 2017. / AFP PHOTO / NICHOLAS KAMM (Photo credit should read NICHOLAS KAMM/AFP/Getty Images)
NICHOLAS KAMM via Getty Images
POLITICS
Donald Trump Literally Nominated The Goldman Sachs Bailout Lawyer To Run The SEC
By Zach Carter
Will Democrats roll over?
U.S. President Donald Trump pauses while speaking during a joint session of Congress in Washington, D.C., U.S., on Tuesday, Feb. 28, 2017. Trump will press Congress to carry out his priorities for replacing Obamacare, jump-starting the economy and bolstering the nation's defenses in an address eagerly awaited by lawmakers, investors and the public who want greater clarity on his policy agenda. Photographer: Jim Lo Scalzo/Pool via Bloomberg
Bloomberg via Getty Images
POLITICS
Trump Administration Sets Off Alarm Bells By Pulling Nominees To Regulatory Commissions
By Sam Stein and Ryan Grim
The deconstruction of the administrative state is underway. But expect Senate Republicans to push back.
PREVIOUS NEXT
Page 1 2 3 4 5 ...