US SEC seeks to close Musk, Tesla settlement fund

Reuters NEW YORK: The US Securities and Exchange Commission said on Tuesday it completed distributions from a $40 million fund created from civil fines paid by Elon Musk and his electric vehicle company Tesla to resolve the regulator's first civil enforcement case against the world's richest person. In a filing in Manhattan federal court, the SEC asked a federal judge to close the Fair Fund, created after Musk settled the SEC case in 2018 charging him with securities fraud for posting on August 7, 2018, that he had "funding secured" to potentially take Tesla private. Also read | Jensen Huang case: Nvidia CEO love affair scandal revives push for tougher US line on China His posts on Twitter that day caused Tesla's shares and trading volume to spike, with the shares closing more than 6% higher than when he began posting. They later fell after it became clear Musk had not lined up financing. Musk and Tesla each paid a $20 million civil fine, with sums designated for investor victims of the alleged fraud. Neither defendant admitted wrongdoing. Musk also agreed to let Tesla lawyers review some Twitter posts in advance, and give up his role as chairman. Live Events The SEC said a claims administrator distributed $41.53 million, including interest and after deducting fees, to 3,350 eligible claimants. Those claimants received 51.7% of their approved claims because their losses exceeded the Fair Fund's size. Another 3,046 claims were rejected. The SEC said the approximately $449,000 remaining in the Fair Fund will go to the US Treasury. "Distribution of the Fair Fund is now complete," the SEC said. Also read | US judge says Trump's $10 billion BBC defamation case can proceed The case is separate from the SEC case accusing Musk of waiting 11 days too long in March and April 2022 to disclose his early purchases of Twitter shares. Musk settled that case by having a trust in his name pay $1.5 million, also without admitting wrongdoing. A federal judge approved that settlement in July, while expressing "significant misgivings" about whether the SEC let Musk off too easily. Musk is a former adviser to Republican US President Donald Trump. He bought Twitter in 2022, renamed it X, and later folded the social media platform into his rocket and satellite company SpaceX. Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel ) Read More News on US SEC Elon Musk Tesla tesla settlement fund elon musk civil fine settlement musk (You can now subscribe to our Economic Times WhatsApp channel ) Read More News on US SEC Elon Musk Tesla tesla settlement fund elon musk civil fine settlement musk Explore More Stories Sass Jordan cause of death: How did ‘Racine’ singer die after cancelling shows over ‘serious medical condition’? Canadian rock singer Sass Jordan, voice behind ‘Make You a Believer’ and ‘Tell Somebody,’ dies at 63 Helicopter crash on Montreal’s South Shore leaves 4 dead; Transport Minister expresses condolences as probe begins Nova Scotia teacher charged with sexually assaulting student at school as police identify more victims Nova Scotia Crime: Teacher faces multiple serious charges, prohibited from public places after alleged assaults at Riverton school Psychology explains why people who dislike being interrupted may be protecting more than just their train of thought Powerball jackpot climbs to $313 million for September 21 drawing - Here's what Monday night's winner could take home Quote of the Day by Malala Yousafzai: ‘One child, one teacher, one book, one pen can…’ - How one person can spark global change with the simplest tools Quote of the Day by Thomas Mann: ‘Whoever loves the more is at a disadvantage and must suffer’ - Nobel-winning novelist on why the person who care more may have more to lose Quote of the Day by Anton Chekhov: ‘Every happy man should have someone with a little hammer at his door to knock and remind him that there are unhappy people, and…’ Gary Myers death: NASCAR legend dies at 76; sons mourn ‘hero’ who shaped four generations of racing Quote of the day by Rita Wilson: ‘Be fearless in trying new things, whether they are physical, mental…’ – Sleepless in Seattle actress on turning fear into growth Manager keeps booking 4:45 PM Friday meetings despite team logging off at 5, employee calls it a ‘Friday ambush’ and asks if it’s a power move 1 2 3