U.S. SEC chairman says Tesla case is ‘settled’ despite CEO’s tweet

FILE Photo – Tesla and SpaceX CEO Elon Musk participates in a “hearth chat” at the Countrywide League of Towns (NLC) 2018 Town Summit in Los Angeles, California, U.S. November 8, 2018. REUTERS/Kyle Grillot

(The Nov. 26 story corrects paragraphs 4 and 5 to display the SEC filed fees against Musk and Tesla, and that Musk and Tesla settled individuals rates with no admitting or denying the SEC’s allegations)

By Katanga Johnson

WASHINGTON (Reuters) – The U.S. Securities and Trade Commission chairman mentioned on Monday that the agency would not revisit its securities fraud settlement with Tesla Inc even with Main Government Elon Musk’s tweet mocking the regulator.

Jay Clayton appeared to be unaware of the Oct. 4 tweet describing the SEC as the “Shortseller Enrichment Fee,” when CNBC anchors study it to him on Monday.

“He stated that?” Clayton requested, declining to remark even more. “As far as I’m anxious, that matter is settled.”

Tesla and Musk agreed in September to pay $20 million each to settle SEC expenses about Musk’s tweets on Aug. 7 that reported he was considering using Tesla private and had secured funding for these kinds of a offer.

Musk and Tesla settled the fees versus them with no admitting or denying the SEC’s allegations.

The settlement requires him to be additional restrained on Twitter, prompting speculation that the agency could overview the settlement soon after Musk’s Oct. 4 tweet which arrived hours right after a federal choose requested him and the SEC to justify their settlement. Shares of the electric carmaker fell as considerably as 4 percent following that tweet.

“I feel it was an appropriate settlement 1 that sent a concept to the marketplace, allowing CEOs know that if they talk, they need to have to talk properly,” Clayton said.

Reporting by Katanga Johnson Modifying by Michelle Price tag and Richard Chang

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