2023-08-26 14:15:00
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26.08.2023 17:15, Vladimir Fetisov
Tesla shareholders who have declared their financial losses following the automaker’s CEO Elon Musk tweeted a few years ago regarding his intention to take the company private will receive compensation that will partially recoup their losses. The US Securities and Exchange Commission (SEC) has identified 3,350 applicants for compensation from a fund of $42.3 million, through which they will be able to recover regarding 52% of the lost funds.
Image Source: Tesla
This is stated in the court statement, which was filed in the court of the Southern District of New York. The decision comes just months following Musk was found not guilty in a securities fraud trial. The authors of the class-action lawsuit accused the billionaire of fraud because of his post regarding the intention to buy back all the shares of the company and delist on the stock exchange, which was published on Twitter in 2018. This statement led to serious fluctuations in the value of Tesla securities. If Musk lost the case, he would have to pay shareholders billions of dollars in damages.
The $42.3 million fund was formed as part of a settlement agreement concluded with the SEC in 2018. After the regulator filed a complaint alleging that Musk lied regarding his intention to buy back all of Tesla’s shares at $420 per share, the billionaire was forced to step down as chairman of the company’s board of directors and pay a fine of $20 million. Tesla also paid a fine. in $20 million, and taking into account interest payments, the total volume of the compensation fund increased to $42.3 million.
If this fund is divided into 3,350 investors, each will get regarding $12,000. According to available data, the district judge expects to approve payments by September 1 or a little later. The agreement with the SEC also includes a stipulation that Musk must consult a Tesla lawyer before posting certain messages on Twitter. The billionaire sought the abolition of this resolution, calling it a “muzzle” that restricts his right to freedom of speech. However, in May, the judge in charge of the case denied a motion to set aside the ruling. Musk is expected to attempt to appeal the ruling to the U.S. Supreme Court.
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