Judge approves SEC payout from Musk, Tesla settlements
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(Reuters) – A federal judge on Friday authorized the U.S. Securities and Exchange Commission to distribute $40 million from its 2018 settlements with Tesla Inc. and CEO Elon Musk, after Mr. Musk accused the regulator of dragging its heels.
U.S. District Judge Alison Nathan in Manhattan approved the distribution plan that the SEC proposed on March 9.
Her approval came after Mr. Musk said the SEC had ignored its "court-ordered duty" by waiting nearly 3 1/2 years to make the payout to investors in his electric car company.
Mr. Musk and Tesla had each paid $20 million civil fines, and Mr. Musk stepped down as Tesla's chairman, to resolve SEC claims that Mr. Musk defrauded investors by tweeting on Aug. 7, 2018, that he had "funding secured" to take Tesla private.
The available funds have since grown to about $41.2 million including interest, according to the SEC.
Alex Spiro, a lawyer for Mr. Musk, declined to comment.
Mr. Musk is seeking to throw out his 2018 agreement with the SEC, which requires that a Tesla lawyer pre-approve his tweets if they could be material to investors.
The SEC opposes Mr. Musk's request. It is also investigating Mr. Musk's Nov. 6, 2021, tweet asking his followers whether he should sell 10% of his Tesla stake, to cover tax bills on stock options.
Mr. Musk has since sold more than 15 million Tesla shares worth about $16.4 billion.
The cases are SEC v. Musk, U.S. District Court, Southern District of New York.
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