This Friday, a federal judge authorized a $41.5 million payout to affected investors based on tweets posted by the mogul in 2018. Elon Musk in which he assured that he had the funds to withdraw his company Tesla stock market and that they were the subject of legal action.
According to a document released this Friday in a New York court, Judge Lewis K. Lyman ordered the money to be handed over to the plaintiffswhich is the result of an agreement reached that same year between Musk and the U.S. Securities and Exchange Commission (SEC).
The case began in August 2018, when Musk announced on Twitter that he was considering delisting Tesla and that I have already found funding buy shares at a price of $420 each, which is much higher than the market price.
The tweet was received with skepticism by the industry, and a few days later Musk admits it’s not true that he had the necessary fundingbut at the same time, there was massive stock volatility, prompting the SEC and a group of investors to sue Tesla and Musk for artificially inflating their value.
In September 2018, Musk, Tesla, and the SEC reached an agreement whereby the first two each of them will pay a $20 million fine.and it forced Musk to temporarily step down as chairman of Tesla’s board of directors and control his tweets about the company.
The SEC said last week that the $41.5 million in damages – two fines plus interest – will be distributed among 3,350 plaintiffs, who will receive an average of about $12,400, allowing them to recover just over half of their claimed losses.
Musk what? he is still the CEO of Teslabought Twitter in 2022 for $44 billion and renamed the social network to X this year.EFE)
Source: Aristegui Noticias
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
