Tesla and Elon Musk’s efforts to respond to the Securities and Exchange Commission over alleged agency harassment of the CEO and his First Amendment rights appear to have hit the first roadblock. In a two-page order Thursday, US District Judge Alison Nathan denied Musk and Tesla’s request for a court hearing over their allegations that the SEC was targeting the company and the CEO with relentless investigations.
On February 17, Tesla attorney Alex Spiro give a letter To the U.S. District Court for the Southern District of New York that determines the company’s complaints and Musk’s complaints about the Securities and Exchange Commission. The letter alleged that the agency was targeting Musk because the CEO is an outspoken critic of the government. The complaint also alleged that the Securities and Exchange Commission was taking too long to distribute a $40 million fine to Musk and Tesla to TSLA shareholders, which was paid after the CEO failed to “secured funding” in 2018, more than three years ago.
Tesla and Musk requested a conference in court to discuss their grievances. However, in a two-page order on Thursday, US District Judge Alison Nathan denied the electric car maker and CEO’s request, noting that it was not clear what Tesla and Musk were requesting in their letter. The judge also suggested that Tesla and Musk file an appropriate application with the court if they seek redress. “The exact application of the defendants before the court is unclear,” Nathan Wrote.
Musk’s feud with the Securities and Exchange Commission has been very prominent lately. Earlier this week, Spiro filed another letter to Judge Nathan alleging that at least one member of the SEC staff Some information was leaked Regarding the investigation. “This leak is emblematic of the inappropriate retaliatory behavior that caused my letter: The Securities and Exchange Commission retaliated against Mr. Musk and Tesla, without responding to the constraints of principle or law in doing so,” the letter read.
Musk also recently noted on Twitter that while he didn’t start a fight with the Securities and Exchange Commission, he would be the one to end it. The CEO also noted that he was “building a case” against the agency.
The Securities and Exchange Commission, for its part, has Tesla and Musk denied allegations In her letter to the judge. The agency said it made talking and communicating with Tesla and Musk a point before raising issues in court. The Securities and Exchange Commission also dismissed the idea that the $40 million fine was to be distributed to TSLA shareholders so long because the process for doing so was too complicated. However, the agency indicated that the plan to share the money and distribute it to TSLA investors should be ready around March 2022.
Recently, there have been reports that the Securities and Exchange Commission has done I started an investigation About whether Musk and his brother Kimball violated securities law when they sold shares of TSLA last year.
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