Shulou(Shulou.com)11/24 Report--

On the morning of February 22, Beijing time, it was reported that recently, US billionaire Musk won a class action lawsuit on securities fraud. His lawyers went further and applied to a US appeals court, hoping to cancel the agreement signed by Musk and the US Securities and Exchange Commission (SEC) in 2018. The content of the agreement "ordered" Musk to release Tesla related information on social media before. First of all, it must be reviewed by the company's legal staff.

In 2018, Musk posted on Twitter that he would take Tesla private and delist, causing uproar and stock price volatility, and Tesla shareholders who suffered financial losses later filed a class action lawsuit against Musk accusing him of securities fraud. On March 3, a federal district court in San Francisco, California, ruled Musk not guilty in the case after trial.

In those August 2018 posts, Musk said Tesla would be taken private for $420 a share and that the acquisition funds were already available. He also said that for this privatization acquisition, it can be confirmed that Tesla investors will support it. However, his so-called "privatization merger" did not materialize, and these social media posts eventually led to a lawsuit by Tesla shareholders.

After those posts, Tesla shares were suspended from trading, and the company's stock price fluctuated for weeks afterward.

The SEC investigated Musk's posts and actions and filed charges, and Musk and the SEC later reached a settlement agreement in 2018. The agreement stipulates that if Musk's Twitter posts contain information that may cause Tesla's share price to fluctuate in the future, Tesla's designated legal and regulatory compliance officer (colloquially known as a full-time "Twitter posting nanny") must review and approve Musk's posts in advance.

In a letter to the court this week, Musk's attorney, Alex Spiro of the law firm Quincy & Eagle, noted that past SEC settlements with Musk no longer have a legal basis, based on the court's recent final ruling on Musk's alleged securities fraud case.

Spiro said the court's decision further demonstrated why public opinion demanded that settlement agreements that violate the U.S. Constitution be avoided, including those signed by the SEC and Musk.

Musk and the SEC have yet to comment on the latest request.

It should be pointed out that although the court ruled in favor of Musk, there is still enough time for shareholders and lawyers who filed lawsuits against Musk and Tesla to appeal. Nicholas Porritt, a lawyer representing the plaintiffs 'shareholders in the case, has not yet commented.

At the time of the court's ruling on February 3, Bollit told the press via email that he was deeply disappointed with the verdict and was considering next steps.

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