Distribution of the Tesla Fair Fund Established by the Securities & Exchange Commission
WASHINGTON, June 3, 2022 -- 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.
SOURCE U.S. Securities and Exchange Commission