SEC Alleges Tesla Failed to Rein In Musk on Twitter
The Securities and Exchange Commission (SEC) twice informed Tesla (NASDAQ: TSLA) that enigmatic CEO Elon Musk flouted a court order that required his posts on Twitter to be reviewed and approved by the company's legal department prior to submission, according to a report in The Wall Street Journal. The records were obtained under the Freedom of Information Act.
The SEC brought an enforcement action against Tesla in 2018, alleging that Musk sent a fraudulent tweet regarding potentially taking the company private. Tesla settled and Musk was fined $20 million as part of the settlement. The company also agreed to have Tesla's lawyers approve Musk's posts on social media in advance.
Image source: Tesla.
Source Fool.com
