Syndication: Austin American-Statesman
DETROIT (AP) — Elon Musk’s request to scrap a settlement with securities regulators over 2018 tweets claiming he had the funding to take Tesla private is being denied by a federal judge in New York.
Judge Lewis Liman on Wednesday also denied a motion to nullify subpoenas of Musk seeking information about possible violations of his agreement with the Securities and Exchange Commission. Musk had asked the court to throw out the settlement, which required that his tweets be approved by a Tesla attorney.
The SEC is investigating whether the Tesla CEO violated the October 2018 agreement. Under the settlement, Musk and Tesla each agreed to pay civil fines over Musk’s tweets about having “funding secured” to take Tesla private at $420 per share.
The funding wasn’t secured and Tesla remains public.
