Distribution of the Tesla Fair Fund Established by the Securities & Exchange Commission
06/03/2022 - 10:00 AM
WASHINGTON , June 3, 2022 /PRNewswire/ -- The following is being released by the Securities and Exchange Commission about the lawsuits SEC v. Elon Musk , No. 18-cv-8865 (S.D.N.Y.) and SEC v. Tesla, Inc. , No. 18-cv-8947 (S.D.N.Y.).
Those who purchased or acquired Tesla common stock, listed on a U.S. Exchange and registered with the Commission and traded under the symbol TSLA (the "Securities") during the Relevant Period (between 12:48:16 p.m. EDT on August 7, 2018 and 4:00 p.m. EDT on August 8, 2018 ), may be eligible for a distribution from the Fair Fund.
On September 27, 2018 , the Securities and Exchange Commission ("SEC" or "Commission") filed a civil action against Elon Musk ("Musk") alleging violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b -5 thereunder in connection with certain false and misleading statements by Musk.
On September 29, 2018 , the Commission filed a related civil action against Tesla, Inc. ("Tesla") alleging violations of Exchange Act Rule 13a-15, also in connection with Musk's false and misleading statements.
The two complaints alleged that Musk, the Chief Executive Officer of Tesla, made a series of materially false and misleading statements about Tesla on his Twitter account in August 2018 , and that Tesla failed to implement adequate procedures or controls for determining whether to disclose the information Musk disseminated on Twitter in its filings.
Musk and Tesla (the "Defendants") paid a total of $40 million to the Commission. By Order entered February 26, 2020 , the Court established a Fair Fund, so the civil penalties paid by the Defendants can be distributed to harmed investors.
To receive a payment from the Fair Fund, you must satisfy the following: 1) You must have purchased or acquired Tesla common stock, listed on a U.S. exchange and registered with the Commission and traded under the symbol TSLA, during the Relevant Period; 2) Your approved transactions must calculate to a Recognized Loss Amount pursuant to the Plan of Allocation and the Distribution Payment must equal or exceed $10.00 ; and 3) You are not an Excluded Party as defined in the Plan of Distribution (the "Plan").
You can file an online Claim Form or obtain a physical Claim Form by visiting www.SECvTeslaFairFund.com . To submit a Claim Form by mail, you must submit it to SEC v Tesla Fair Fund , c/o Rust Consulting, Inc., Distribution Agent – 7329, P.O. Box 44, Minneapolis, MN 55440-0044. All Claim Forms are due by September 17, 2022 .
For more information: Copies of the Plan, the Plan Notice, and the Claim Form are available at www.SECvTeslaFairFund.com as well as background information. You may also call 1 (877) 576-9981 or email the Distribution Agent at info@SECvTeslaFairFund.com .
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SOURCE U.S. Securities and Exchange Commission