The SEC is asking for Musk to be permanently barred from acting as an officer of a publicly traded company.
Or be on the board of directors. And I have to imagine his investments are going to be scrutinized to hell and back.
It would likely have a timeframe applied (look at Holmes, got a 10 year ban for the massive fraud she pulled), so it might not be a TKO for Musk at Tesla/etc.
Yeah, I know, that is what I was referring to. The SEC wins Elon is screwed. But the SEC might actually be hoping for a settlement that isn't as harsh. Either way, I think Elon and Tesla are going to be pretty hurt by it.
The Wall Street Journal has an article saying there was a settlement offer but Musk bailed on it at the last minute.
https://www.wsj.com/articles/elon-musk-sued-by-the-sec-for-securities-fraud-1538079650
Here's a non-paywall article:
https://www.cnbc.com/2018/09/28/teslas-musk-pulled-plug-on-settlement-with-sec-at-last-minute.html
That would help explain why they're threatening to bring the hammer down so hard on him. If he ditched the settlement I can't imagine they'll offer a kind one again, so he could be looking at a pretty stiff punishment.
But hey, he's staying "true to himself", so have fun with that. At least it might free him up for the trial over calling that guy a pedophile.
I'm not totally surprised SEC is suing but I'm surprised how quickly the lawsuit was filed and the severity of the demand. SEC is throwing the book at Elon and going after him hard to make an example of him. It does not look good for Elon and Tesla. If the worst case comes true and Elon loses and is barred from serving as the CEO and chairman of Tesla, perhaps he can do what he did for the sale of flamethrowers for his The Boring Company. Just like Elon sold the flamethrowers as "Not a Flamethrower", perhaps he can still guide Tesla with CEO title of "Not a CEO."
Doubt he'd be able to get away with that, and anyone that helps enable it will likely not be having a great time either.