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☆ SEC rebuffs Elon Musk's attempt to get out of 'funding secured' settlement
▼ + stars: | 2023-02-23 | by ( Lora Kolodny | ) www.cnbc.com time to read: +3 min

When the SEC charged him with civil securities fraud in response to those tweets, Musk and Tesla settled, signing a revised consent decree in 2019. As part of the settlement, Tesla and Musk each agreed to pay $20 million fines, and Musk agreed to relinquish his role as chairman of the board at Tesla for three years. Among other terms, Musk agreed to a "Twitter sitter," colloquially speaking. With the appeal in the Second Circuit, Musk is trying to unwind at least some terms of the earlier SEC settlement agreement. The SEC lawyers also questioned whether there is any legal basis to consider undoing the settlement all these years later.

☆ Elon Musk's lawyer asks court to throw out 'Twitter sitter' deal with SEC
▼ + stars: | 2023-02-21 | by ( Ashley Capoot | ) www.cnbc.com time to read: +2 min

vFollowing Elon Musk's recent victory in a securities fraud trial, the Tesla CEO's lawyer has once again asked an appeals court to throw out his 2018 deal with the Securities and Exchange Commission requiring a company lawyer to review his Tesla-related tweets before sharing them. On Feb. 3, a jury in a in a San Francisco federal court found that Musk and Tesla were not liable in a class-action securities fraud trial stemming from tweets Musk made in 2018. Trading in Tesla was halted after his tweets, and its share price remained volatile for weeks. Musk and the SEC did not immediately respond to requests for comment. Attorneys for the shareholders who sued Musk and Tesla over the take-private related tweets still have time to file for an appeal.

☆ Elon Musk says he is 'deeply appreciative' of the jury that cleared him in the Tesla trial, tweeting 'Thank goodness'
▼ + stars: | 2023-02-04 | by ( Sam Tabahriti | ) www.businessinsider.com time to read: +2 min

Elon Musk was cleared Friday by a federal jury over his "funding secured" 2018 tweet to take Tesla private. "Thank goodness" the billionaire tweeted late Friday night following the verdict by a federal jury of nine individuals in the civil trial. Musk's 2018 tweet, which pushed Tesla's shareholders to launch the costly legal battle against him, read: "Am considering taking Tesla private at $420. Funding secured." Musk told jurors in January that he trusted Al-Rumayyan's verbal promises, which led to the "funding secured" tweet about taking Tesla private.

Musk is likely to "double down" on his communication tactics after the verdict, said Minor Myers, a professor of corporate law at the University of Connecticut. Musk ultimately abandoned his effort to take Tesla private, but told jurors early in the three-week trial that he had believed what he wrote in tweets. "I expect Elon is going to write anything he wants,"Musk himself thanked the jury on Twitter -- which he bought in October for $44 billion. The tweets led to Musk and Tesla paying $40 million to resolve U.S. Securities and Exchange Commission civil charges under a consent agreement that Musk has fought unsuccessfully to lift. Still, many analysts said Musk, who has tweeted more than 22,000 times and has about 128 million Twitter followers, has no reason to slow down now.

[1/3] Tesla CEO Elon Musk and his security detail depart the company’s local office in Washington, U.S. January 27, 2023. Ives added that some Tesla investors feared Musk might have to sell more Tesla stock if he lost. Tesla investors have expressed concerns that running the social media company has taken up too much of his focus. During the three-week trial, Musk spent nearly nine hours on the witness stand, telling jurors he believed the tweets were truthful. He said his tweets in general did not always affect Tesla stock the way he expects.

☆ Elon Musk was reportedly cleared by a federal jury's verdict that his 'funding secured' tweet in 2018 didn't harm Tesla investors
▼ + stars: | 2023-02-03 | by ( Sindhu Sundar | Grace Kay | ) www.businessinsider.com time to read: +4 min

A jury found investors failed to prove Elon Musk derailed them with his tweet that he had "funding secured" to take Tesla private, per the WSJ. Tesla investors had alleged that his public statements resulted in billions of dollars in damages. Those verbal assurances in part led him to tweet that he had "funding secured" for a take-private deal for Tesla, he told jurors last month. Musk's tweet, which he posted in August 2018, read, "Am considering taking Tesla private at $420. Porritt, the Tesla investors' attorney, had framed the stakes of the case in sweeping, existential terms, arguing that it came down to a question of whether regular investors could trust the public markets.

Musk ended three days on the stand defending against claims that he defrauded investors by tweeting on Aug. 7, 2018, that he had "funding secured" to take Tesla private. The trial in San Francisco federal court is testing whether the world's second-richest person can be held liable for his sometimes impulsive use of Twitter. Musk, however, acknowledged he did not have binding agreements with investors, leaving it to the jury to decide if he misled shareholders. The Saudi fund did not immediately respond to a Reuters request for comment. But when questioned by Nicholas Porritt, a lawyer for the investors, Musk said he did not have binding agreements for financing from any interested party.

Musk is defending against claims he defrauded investors by tweeting on Aug. 7, 2018, that he had "funding secured" to take Tesla private at $420 per share, and that "investor support is confirmed." He has testified that he chose not to take Tesla private due to a lack of support from some investors and a wish to avoid a lengthy process. A jury of nine will decide whether the Tesla CEO artificially inflated the company's share price by touting the buyout's prospects, and if so by how much. In addition, Musk testified on Monday that he met on July 31, 2018, with representatives of the Public Investment Fund at Tesla's factory in Fremont, California. Musk said the fund's governor, Yasir Al-Rumayyan, later backpedaled on the commitment to take Tesla private.

[1/5] Elon Musk attends the opening ceremony of the new Tesla Gigafactory for electric cars in Gruenheide, Germany, March 22, 2022. He added later that he chose not to take Tesla private due to a lack of support from some investors and a wish to avoid a lengthy process. Musk told the investors' lawyer Nicholas Porritt that he met on July 31, 2018, with representatives of Saudi Arabia's sovereign wealth fund, the Public Investment Fund, at Tesla's factory in Fremont, California. That never came to pass, Musk said, because the fund's governor, Yasir Al-Rumayyan, later backpedaled on the commitment to take Tesla private. "I was very upset because he had been unequivocal in his support for taking Tesla private when we met and now he appeared to be backpedaling," Musk testified.

"PIF unequivocally wanted to take Tesla private," he testified. Musk subsequently said that Yasir Al-Rumayyan, governor of the fund, later backpedaled on the commitment to take Tesla private. "I was very upset because he had been unequivocal in his support for taking Tesla private when we met and now he appeared to be backpedaling," Musk testified. Tesla's stock price surged after Musk's tweets, and later fell as it became clear the buyout would not materialize. Musk testified calmly, in contrast to his occasional combative testimony in earlier trials.

Tesla's stock price surged after Musk's tweets, and later fell as it became clear the buyout would not happen. A jury of nine will decide whether the billionaire artificially inflated Tesla's share price by touting the buyout's prospects, and if so by how much. "It was chosen because it was a 20% premium over the stock price," he testified. Musk testified calmly, in contrast to his occasional combative testimony in earlier trials. The defendants also include current and former Tesla directors, whom Spiro said had "pure" motives in their response to Musk's plan.

Tesla CEO Elon Musk took the witness stand again Monday in a trial over whether he purposefully misled investors when he tweeted that he had "secured" funding to take the electric car maker private. Musk is being sued by Tesla investors who claim the August 2018 take-private tweet caused them to lose substantial sums of money. “Just because I tweet something does not mean people believe it or will act accordingly,” Musk told the jury Friday in San Francisco federal court. Musk’s attorney, Alex Spiro, told the jury in opening statements last week that Musk believed he had financing from Saudi backers and was taking steps to make the deal happen. Asked Friday about requests from Twitter stakeholders to avoid tweeting, Musk said he did not recall them.

Companies Tesla Inc FollowTwitter Inc FollowJan 23 (Reuters) - Tesla Chief Executive Elon Musk will take the witness stand again on Monday, as he defends himself against fraud claims that he lied when he tweeted in 2018 that he had funding to take the electric carmaker private. Millions of dollars are at stake as well as the reputation of Musk, whose personal stature is a central asset of the Tesla brand. The trial will test whether Musk's penchant for taking to Twitter to air his sometimes irreverent views misleads investors and damages the value of the company. Shareholders claim they lost millions after Musk tweeted that he had "funding secured" to take Tesla private. The defendants include current and former Tesla directors, whom Spiro said had "pure" motives in their response to Musk's plan.

☆ Elon Musk returns to the stand in class-action lawsuit over controversial tweet
▼ + stars: | 2023-01-23 | by ( Matt Mcfarland | ) edition.cnn.com time to read: +3 min

Washington, DC CNN —Tesla CEO Elon Musk took the stand again on Monday morning in a California courtroom to testify for a second day in the lawsuit over his controversial “funding secured” tweet from 2018. Musk had spoken to executives of the Saudi sovereign wealth fund about the funding he would need to take Tesla private. However, it was anything but “secured.” Musk shared his recollection of the incident in his testimony Monday. He pointed to an incident in May of 2020 when he tweeted that “Tesla stock price is too high.” The stock price dropped the day of his tweet but recovered and closed the year higher than it had opened. Musk testified Friday that no one at Tesla reviewed his tweets in 2018 before he published them.

He called it the most democratic way to communicate but said his tweets did not always affect Tesla stock the way he expected. "Just because I tweet something does not mean people believe it or will act accordingly," Musk told the jury in San Francisco federal court. [1/5] Tesla CEO Elon Musk testifies during a securities-fraud trial in San Francisco, California, U.S., January 20, 2023 in this courtroom sketch. Earlier on Friday, Tesla investor Timothy Fries told the jury that he lost $5,000 buying Tesla stock after Musk sent the tweet, which sparked volatile swings in Tesla's stock. Musk's attorney, Alex Spiro, told the jury in his opening statement Wednesday that Musk believed he had financing from Saudi backers and was taking steps to make the deal happen.

The court trial to decide whether a tweet Elon Musk sent in 2018 cost Tesla investors millions of dollars will resume Friday, with Musk himself potentially taking the stand. Tesla shareholders are suing the company to recoup losses they say they suffered amid Musk's claims that he had "secured" money to take the company private at $420 per share. Had the plan ultimately materialized, people who owned shares of Tesla at the time could have earned profits on their holdings. After the trial adjourned Wednesday, Porritt told The Associated Press he hopes to call Musk to the stand Friday after two other witnesses testify. Littleton told the nine-person San Francisco jury that Musk’s claim about the financing alarmed him.

☆ Tesla will 'keep blowing our minds' despite Elon Musk's preoccupation with Twitter, an executive at Chinese tech giant Tencent said
▼ + stars: | 2023-01-20 | by ( Sawdah Bhaimiya | ) www.businessinsider.com time to read: +3 min

Tesla will "keep blowing our minds," even if Elon Musk is distracted by running Twitter. That's according to Chinese tech giant Tencent's chief exploration officer David Wallerstein. Wallerstein helped lead Tencent's 2017 investment in Tesla. Wallerstein led an investment from the Chinese tech giant into Tesla in 2017, taking a 5% stake worth about $1.78 billion at the time. Tencent has since divested its stake in Tesla, and no longer holds any Tesla stock, per data compiled by Bloomberg.

Companies Tesla Inc FollowJan 20 (Reuters) - Elon Musk, Tesla Inc's (TSLA.O) chief executive, is likely to be called to testify on Friday in a jury trial over his 2018 tweet that he had "funding secured" to take the electric carmaker private, which shareholders allege cost them millions in trading losses. The billionaire entrepreneur is listed as the third possible witness on Friday, after a securities expert and a Tesla investor, in the class action trial in San Francisco federal court. Fearing leaks to the media, Musk tried to protect the "everyday shareholder" by sending the tweet, which contained "technical inaccuracies," Spiro said. The defendants include current and former Tesla directors, whom Spiro said had "pure" motives in their response to Musk's plan. The trial resumes after a day off on Thursday.

Tesla investor Glen Littleton is seeking damages on behalf of shareholders who traded the company's stock in the days after Musk posted his plan to take the company private on Twitter in August 2018. Musk's lawyer disputed this characterization, saying that the billionaire was "serious" about taking the company private in 2018, but ultimately encountered shareholder opposition. Musk believed that financing was not an issue and was "taking steps" to make a deal happen, Spiro told the jury. The self-employed investor said he viewed Musk's "funding secured" statement as "absolute." Spiro said on Wednesday that Tesla's stock price jumped in response to Musk saying he was considering taking the company private, which he said was true.

SAN FRANCISCO, Jan 18 (Reuters) - A lawyer for Tesla Inc (TSLA.O) investors said on Wednesday that CEO Elon Musk "lied" when he tweeted in 2018 that funding was "secured" to take the company private. Musk's alleged lies caused "regular people" to lose millions, Nicholas Porritt, lead attorney for the investors, told a jury in San Francisco during opening statements. Musk's lawyer disputed this characterization, saying that the billionaire was "serious" about taking the company private in 2018, but ultimately encountered shareholder opposition. Tesla investor Glen Littleton is seeking damages on behalf of shareholders who traded the company's stock in the days after Musk posted his plan to take the company private on Twitter in August 2018. Reporting by Jody Godoy in San Francisco Editing by Peter Henderson, Noeleen Walder and Matthew LewisOur Standards: The Thomson Reuters Trust Principles.

☆ Elon Musk lost his bid to move his securities fraud trial out of San Francisco, where his lawyers claim too many potential jurors are biased against him
▼ + stars: | 2023-01-13 | by ( Sarah Jackson | ) www.businessinsider.com time to read: +3 min

A judge denied Elon Musk's request to move his securities fraud trial from San Francisco to Texas. Musk's lawyers had claimed too many potential jurors would be biased against him after he took over San Francisco-based Twitter and promptly laid off half of its staff. He petitioned for the trial to take place in Texas instead; Musk moved Tesla's headquarters from Palo Alto, California to Austin, Texas in 2021. After Musk's legal team asked to move the trial, lawyers for the Tesla shareholders in the case responded by poking fun at Musk. Musk, his legal team, and Tesla did not immediately respond to requests for comment.

☆ Frank, the college loan start-up JPMorgan is suing for fraud, was warned by the FTC for misleading students about Covid relief money
▼ + stars: | 2023-01-13 | by ( Katherine Long | ) www.businessinsider.com time to read: +4 min

JP Morgan Chase has accused the student loan platform Frank and its founder Charlie Javice of inventing millions of fake customers to juice its value. In 2020, the Federal Trade Commission warned Frank that it "may be unlawfully misleading consumers" about student COVID relief. The company promised students help accessing the grant money, but all Frank was doing was generating a form letter students could send to university administrators. "We are concerned that Frank is creating false hope and confusion for students while contributing to unnecessary extra work for financial aid administrators," the representatives wrote. The advance wouldn't need to be paid back until "your aid comes in," the company wrote on its website.

☆ Tesla shareholder attorneys taunted Elon Musk over his attempt to move a trial to Texas due to 'local negativity:' He has a 'knack for attracting 'negative' coverage'
▼ + stars: | 2023-01-12 | by ( Grace Kay | ) www.businessinsider.com time to read: +4 min

Tesla shareholder attorneys poked fun at Elon Musk's attempt to move a trial to Texas in court filing. Last week, Musk's lawyer said a trial should not be held in California due to "local negativity." Attorneys for the investors said the billionaire has a "knack for attracting 'negative' coverage." Musk and a Tesla spokesperson did not respond to a request for comment from Insider ahead of publication. The trial revolves around 2018 tweets from Musk in which the Tesla CEO said he had funding secured to take the carmaker private.

☆ Before JPMorgan accused Charlie Javice of inventing millions of fake customers, the Frank founder settled with the federal government over accusations she was misleading students
▼ + stars: | 2023-01-12 | by ( Katherine Long | ) www.businessinsider.com time to read: +5 min

Visitors to Frank's website could get the mistaken impression that the company was affiliated with the federal government, the Department of Education said in 2017. The Department argued that Frank's website was "likely to confuse consumers." The Department stated in a cease and desist letter that Frank could be misleading applicants looking for the government's official FAFSA website. On social media and elsewhere, Frank sometimes referred to the form as "Frank's FAFSA," according to the settlement. In numerous media interviews, including with Insider, Javice has cast herself as a mold-breaking entrepreneur.

☆ JPMorgan sues the founder of the college financial-planning website it acquired, alleging she falsely inflated its user numbers
▼ + stars: | 2023-01-12 | by ( Sindhu Sundar | ) www.businessinsider.com time to read: +3 min

JPMorgan alleged that college financial-planning website Frank lied about its growth and users. JPMorgan's suit accused Frank's founder Charlie Javice and its former chief growth officer Olivier Amar of being in on a scheme to juice its user numbers. The pair used that list to make the inflated user numbers seem credible. The bank claimed that the startup provided the false user numbers while it was conducting due diligence when looking into acquiring the company. As of Thursday morning, JPMorgan had closed down Frank's website, a representative for the bank confirmed to Insider.

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