West News Wire: In response to claims that they are pestering Elon Musk, US securities regulators wrote in a letter that they are following a judge’s instructions in attempting to talk with the Tesla CEO’s lawyers about his Twitter remarks.
The judge considering a securities complaint against Musk requested both sides to meet before raising issues with the court, according to Steven Buchholz of the Securities and Exchange Commission’s San Francisco Office in a letter dated Friday.
He also denied that the SEC has issued subpoenas in the Musk Twitter case and that the agency is taking too long to disperse a $40 million penalty owed to Tesla shareholders by Musk and Tesla.
Early Thursday, lawyers for Musk sent a letter to U.S. District Judge Alison Nathan in Manhattan accusing the SEC of harassing him with investigations and subpoenas over his Twitter posts. In 2018, Musk and Tesla each agreed to pay $20 million in civil fines over Musk’s tweets about having the money to take the company private at $420 per share. The funding was far from secured and the company remains public. The settlement specified governance changes, including Musk’s ouster as board chairman, as well as approval of Musk’s tweets.
The letter from attorney Alex Spiro accuses the SEC of trying to “muzzle” Musk, largely because he’s an outspoken government critic.
“The SEC’s outsized efforts seem calculated to chill his exercise of First Amendment rights rather than to enforce generally applicable laws in an even-handed fashion,” the letter stated.
Spiro also questioned why the SEC hasn’t distributed the $40 million in fines to Tesla shareholders more than three years after the settlement.
Buccholz wrote that during a 2019 contempt hearing, the judge encouraged the parties to make good faith efforts to meet before raising any compliance issues with the court.
“The Commission’s enforcement staff have, accordingly, sought to meet and confer with counsel for Tesla and Mr. Musk to address any concerns regarding Tesla and Mr. Musk’s compliance with the court’s amended judgments,” Buchholz wrote.
The SEC has followed court orders in distributing the settlement money and that process is nearing completion, his letter said.
