An SEC commissioner recently criticized the deal that the agency reached with Tesla CEO Elon Musk.
Reuters reports that SEC commissioner Robert Jackson recently stated his disapproval of a deal that the agency reached with Tesla CEO Elon Musk ,who has had multiple issues with the agency over the last year. Musk reached a deal with the SEC on Friday in which he agreed to submit any public statements about Tesla’s financial dealings for review by legal counsel before publishing them on social media.
Jackson noted his issues with this in a statement, saying: “Given Mr. Musk’s conduct, I cannot support a settlement in which he does not admit what is crystal clear to anyone who has followed this bizarre series of events. Musk breached the agreement he made last year with the Commission — and with American investors.”
The deal that Musk reached with the SEC was approved by U.S. District Judge Alison Nathan in Manhattan; the deal settled a dispute between Musk and the SEC which sought to find Musk in contempt over a securities fraud settlement last year. Nathan ordered the two parties to reach an agreement between each other earlier this month.
The new arrangement goes into further detail about the sort of statements Musk must have reviewed by Tesla’s legal counsel before publishing them, this includes delivery numbers of Tesla vehicles, financial statements, and previously unreported production figures.
Musk was sued by the SEC last year for making fraudulent statements following his posting of a tweet in which he claimed that he had “funding secured” to take tesla private once stock prices reached $420 per share. Both Tesla and Musk were fined $20 million each and were forced to appoint a new chairman of Tesla’s board.