The judge approves the agreement between Musk and the SEC on the use of Twitter by the CEO



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NEW YORK (Reuters) – A federal judge on Tuesday approved the signing of an agreement between Tesla Inc.'s chief executive, Elon Musk, and the US Securities and Exchange Commission on the use of Twitter by Musk.

US District Judge Alison Nathan in Manhattan has approved the agreement reached on Friday that resolved the dispute in which the SEC tried to find Musk in defiance of a settlement for securities fraud last year. . [L1N2281M6]

Earlier this month, Nathan ordered the parties to agree among themselves.

The new agreement further defines the types of Musk statements that must be reviewed by Tesla's legal counsel prior to publication, such as financial statements, previously undeclared production or delivery numbers, and other matters. .

The regulators claimed that Musk had tweeted in February about Tesla's production figures, which was a violation of the previous regulation, as it had not been verified by the company's lawyers. Musk replied that the tweet was not material.

The SEC sued Musk last year for making fraudulent statements after tweeting on Aug. 7, claiming he had secured "secured financing" for Tesla to be deprived of $ 420 per share.

The parties eventually resolved the problem and the agreement provided that Tesla's lawyers would first approve written submissions, including tweets containing important company information.

(Report by Alexandria Sage in San Francisco, additional report by Mekhla Raina in Bengaluru, edited by Sonya Hepinstall)

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