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Musk accuses the SEC of leaking information concerning him and Tesla

CEO of Tesla, Elon Musk, is still locked in a battle with the Security Exchange Commission (SEC), and he is accusing the body of leaking information.

Elon Musk has had a tumultuous relationship with regulatory bodies, invariably involving his most popular company, Tesla. He is accusing the SEC of leaking information pertaining to a federal investigation in the latest skirmish. He alleges this is in retaliation to his public criticisms of the body.

Counsel to Musk, Alex Spiro, sent the letter detailing the accusation to Judge Alison Nathan of a US district court. Nathan was in charge of the settlement between Musk and the SEC over his infamous tweet that allegedly deceived investors when the CEO claimed to have obtained funding to take Tesla private in 2018.

The letter is a third in the latest series of back-and-forth between Musk and the authorities.

Musk laid out the following points in his letter through his attorney, “It has become clearer and clearer that the Commission is out to retaliate against my clients for exercising their First Amendment rights—most recently by criticizing the Commission on the public docket and by petitioning this Court for relief. Upon information and belief, after I filed the February 17, 2022 letter to this Court regarding the Commission’s conduct, at least one member of the SEC staff responded by leaking certain information regarding its investigation. This leak is emblematic of the vindictive, improper conduct that occasioned my letter: the SEC is retaliating against Mr. Musk and Tesla, without answering to the constraints of principle or law in so doing.”

Spiro has indicated the breach of information has been reported to the agency’s inspector general. He is also requesting assurance from the Commission that it has not leaked any info concerning his client. However, Spiro has not included any evidence to support the accusation.

Musk is under several restrictions due to the SEC’s investigation into his now-deleted tweet. He cannot tweet about Tesla’s financial position, sales, delivery figures, and other subjects without approval from a designated company lawyer.

Given Musk’s propensity to use his Twitter account to pass information about Tesla (the company does not have a PR department), these restrictions are hard for him to abide by. Therefore, it was not surprising when the SEC dragged Musk before a federal judge for violating the terms of the settlement and asked him to be held in contempt. This was as a result of Musk’s tweet that the EV company would make about 500,000 units of the Model 3 this year, which is different from what the company officially projected.

Musk accused the SEC of an unconstitutional power grab, but the federal judge ordered the two parties to work out a settlement.

New tension arose when it became known that the SEC had subpoenaed Musk last year in connection to Musk’s tweet. This time, Musk accused the agency of tormenting him and his company with unending investigations. He also pointed out that the SEC was yet to distribute the $40 million he paid in fines to Tesla shareholders, but the SEC replied it was working on a plan to do so.

Written by HackerVibes

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