SEC Settles with Elon Musk and Tesla: Time to Review Your Disclosure Controls and Procedures

3 October 2018
View Debevoise Update
Key takeaways:
  • On September 29, the Securities and Exchange Commission announced that Elon Musk, CEO and Chairman of Tesla, Inc., had agreed to settle securities fraud charges brought by the SEC and that Tesla had agreed to settle SEC charges that it failed to have required disclosure controls and procedures covering Mr. Musk’s tweets.
  • This case provides a vivid example of the ongoing challenges of using social and other non-traditional media to make company-related disclosures.
  • Companies should review their disclosure controls and procedures to ensure that they remain current and comprehensive in light of new technologies.