US Securities Regulator Denies Elon Musk’s Harassment Claims

Elon Musk’s Harassment Claims: Accusations have sparked US Securities regulators that they’re trying to intimidate Elon Musk by sending a letter to Musk stating that they’re following a judge’s directions in attempting to meet with Elon Musk’s lawyers.

Tesla CEO’s lawyers over his comments on Twitter.

In a letter sent on the previous day, Steven Buchholz of the Securities and Exchange Commission’s San Francisco Office wrote that the judge handling the case of a securities dispute with Musk advised each side to meet before discussing any concerns before the court.

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It was also claimed that SEC issued subpoenas as part of Musk Twitter’s case. Musk’s Twitter case said that the SEC is waiting too long to pay an estimated $40 million (roughly the equivalent of Rs. 298 crores) penalty from Musk and Tesla, which is supposed to be paid to Tesla shareholders.

On Thursday morning, the lawyers of Musk wrote addressed to US District Judge Alison Nathan in Manhattan accusing the SEC of harassing him through subpoenas and investigations over his tweets.

In the year 2018, Musk and Tesla each signed a deal to settle for $20 million (roughly the equivalent of Rs. 150 million) in civil penalties over Musk’s tweets about having funds to take Tesla privatized at $420 (roughly around Rs. 31300) for each share.

The settlement stipulated changes to the company’s governance, which included Musk’s removal from the chairman of the board and the approval of his tweets.

The financing was far from secure, and the company was open for public trading.

A letter sent by attorney Alex Spiro accuses the SEC of trying to “muzzle” Musk, mainly because he’s vigorous opposition to the government.

“The SEC’s excessive efforts appear intended to impede his exercise rights under the First Amendment rights rather than to enforce laws generally applicable fairly and equitably,” the letter stated.

Spiro also asked his reasoning behind why SEC hasn’t yet distributed the fines of $40 million to Tesla shareholders for more than three years later after the deal was made.

Buccholz said that in the contempt hearing in 2019, the judge urged the parties to use good faith to discuss any compliance concerns to the courts.

“The Enforcement staff of the Commission has, therefore, attempted to meet with the counsel of Tesla as well as Mr. Musk to address any questions regarding Tesla or Musk’s or. Musk’s compliance to the judge’s amended rulings,” Buchholz wrote.

The SEC has complied with court orders in distributing settlement funds and is now nearing its conclusion, the letter stated.