Securities Lawyers Weigh In on Elon Musk's Latest SEC Clash
Tesla CEO Elon Musk's counsel claimed the SEC has "no basis to issue contempt sanctions against him" in a filing Monday, adding cited First Amendment concerns. But some lawyers said Musk's second round of incorrect, Tesla-focused tweets didn't meet the "low bar" the SEC agreement set.
March 12, 2019 at 06:08 PM
4 minute read
In the latest episode of Elon Musk's battle with the U.S. Securities and Exchange Commission, the Tesla chief executive officer's lawyers said the agency has no basis for contempt sanctions against him.
The SEC called for Musk to be held in contempt of court last month for tweeting inaccurate Tesla production estimates without seeking pre-approval from the Palo Alto, California-based company's general counsel, an alleged violation of his settlement with the agency. Musk settled with the SEC in September over tweets incorrectly claiming he'd secured funding to take Tesla private at $420 a share.
Musk's defense counsel John Hueston of Hueston Hennigan said in a filing Monday that the CEO has attempted to comply with the SEC agreement and that his tweets contained publicly available information and didn't heavily impact stock prices. Hueston further claimed “the Order as the SEC interprets it would raise serious First Amendment issues and implicate other constitutional rights,” as Musk has openly criticized the agency. Neither Tesla nor Hueston immediately responded to request for comment.
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Trending Stories
- 1The Law Firm Disrupted: For Big Law Names, Shorter is Sweeter
- 2BD Settles Thousands of Bard Hernia Mesh Lawsuits
- 3First Lawsuit Filed Alleging Contraceptive Depo-Provera Caused Brain Tumor
- 4The 'Biden Effect' on Senior Attorneys: Should I Stay or Should I Go?
- 5The Growing Tension—And Opportunity—in Big Law Nonequity Tiers
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250