SEC chairman on Elon Musk settlement: Trying to deter bad actions while protecting Tesla investors

SEC chairman on Elon Musk settlement: Trying to deter bad actions while protecting Tesla investors

After the Securities and Exchange Commission announced a settlement with Tesla Inc. TSLA, -13.90% Chief Executive Elon Musk and the electric-car maker on Saturday, SEC Chairman Jay Clayton released a statement stressing that the agency was attempting to deter securities fraud by executives while protecting retail investors like Tesla’s. He voiced support for the filing of a lawsuit Thursday evening and Saturday’s settlement, saying it is “in the best interests of our markets and our investors.” He went on to say that it “often is the case that the interests of ordinary shareholders – who had no involvement in the misconduct – are intertwined with the interests of offending officials and the company,” specifically bringing up cases in which the “skills and support of certain individuals may be important to the future success of a company.” At the SEC, Clayton said, “the interests of ordinary investors are at the front of our minds and, in matters involving misconduct, we seek to serve those interests to the extent practicable while also ensuring that we remediate and deter misconduct.”

Elon Musk settles with SEC, will remain Tesla CEO but resign as chairman

Elon Musk to step down as Tesla chairman and he and the company will pay a combined fine of $40 million to settle fraud charges.

 

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