US securities agency denies claims it’s harassing Elon Musk
Categories: FOREIGN COUNTRIES
New Delhi: US securities regulators responded to allegations that they are harassing Elon Musk, writing in a letter that they're following a judge's instructions in trying to speak with the Tesla CEO's lawyers about his posts on Twitter.In a letter dated Friday, Steven Buchholz of the Securities and Exchange Commission's San Francisco Office wrote that the judge handling a securities case against Musk encouraged both sides to confer before raising issues with the court. In 2018, Musk and Tesla each agreed to pay USD 20 million in civil fines over Musk's tweets about having the money to take the company private at USD 420 per share.The funding was far from secured and the company remains public. The settlement specified governance changes, including Musk's ouster as board chairman, as well as approval of Musk's tweets.“The SEC's outsized efforts seem calculated to chill his exercise of First Amendment rights rather than to enforce generally applicable laws in an even-handed fashion,” the letter stated. Spiro also questioned why the SEC hasn't distributed the USD 40 million in fines to Tesla shareholders more than three years after the settlement.Buccholz wrote that during a 2019 contempt hearing, the judge encouraged the parties to make good faith efforts to meet before raising any compliance issues with the court.“The Commission's enforcement staff have, accordingly, sought to meet and confer with counsel for Tesla and Mr. Musk to address any concerns regarding Tesla and Mr. Musk's compliance with the court's amended judgments,” Buchholz wrote.The SEC has followed court orders in distributing the settlement money and that process is nearing completion, his letter said.