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Home / Business / Federal Judge sets the date for the hearing on April 4 in a SEC lawsuit against Elon Musk

Federal Judge sets the date for the hearing on April 4 in a SEC lawsuit against Elon Musk



Judge Alison Nathan has scheduled a 4 April hearing on Tuesday. It is unclear when she will make a decision.

Nathan is charged with weighing the SEC's request to convict Musk of violating a settlement agreement reached last year that resulted in him having to obtain a pre-approval for social media posts via the electric vehicle company.

Musk tweeted on February 19 that "Tesla produced 0 cars in 2011, but will make around 500,000 in 2019." Hours later, he posted a follow-up tweet stating that the company would actually deliver only 400,000 cars this year.

Although Musk had corrected his mistake, regulators said he had "published inaccurate and material information about Tesla over 24 million Twitter followers," according to court records.

The SEC sued Musk last month, arguing that it violated a deal it made last October, stating that it receives prior approval for all items with information that is "material" to shareholders. Tesla approved the creation of a board committee to supervise these offices.

Tesla admitted that Musk did not receive prior authorization from anyone on this committee for his February appointments at a court hearing.

Musk claims he has diligently tried to comply with the court ruling, and the SEC's request violates the constitutional right to freedom of expression.

The battle between Musk and the SEC dates back to August 201

8. When Musk tweeted that he had received private money for Tesla for $ 420 a share. Tesla's stock rose after his announcement.

However, Musk did not secure funding, according to SEC, and in September, the regulator filed a lawsuit alleging that it had misled investors. Tesla and Musk were each fined $ 20 million for the settlement, and Musk was forced to resign as chairman of Tesla. He has remained Tesla's CEO.

If Musk is found guilty of contempt, lawyers say he may face a fine, which further limits his use of social media and his removal as Tesla CEO. Nathan could also abandon the SEC settlement and effectively resume the agency's trial of Musk and Tesla.


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