Elon Musk sued for fraud

Elon Musk and Tesla have been sued for fraud by the US Securities and Exchange Commission (SEC) after abandoning plans to privatize the car manufacturing company.

Elon Musk sued for fraud

This move could lead to stopping Musk from directing a public company but may even go through heavy fines for him and the company. Electric vehicle manufacturer shares have fallen more than 4 percent in the first hours after the news release on Thursday.

The SEC Commission and the Department of Justice investigated Tesla, as Musk suggested in August that he was preparing to privatize the company, claiming he had "secured funding".

"His statement was false and misleading. Over the next 3 hours, Musk made a series of statements in Twitter on wholly false materials, "SEC market supervisor says.

Shares then increased by 11 percent, with the news coming to mind, but it turned out that Musk had only held preliminary privatization talks, while funding was not yet secured.

Source: www.worldbulletin.net

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