REUTERS/Eduardo Munoz
- Tesla CEO Elon Musk will meet with SEC officials for at least one hour within the next two weeks, a judge ordered Friday.
- The instructions come the morning after Musk’s lawyers sparred with government prosecutors in court.
- Here’s what happened inside the courtroom on Thursday.
- Visit Business Insider’s homepage for more stories.
Tesla CEO Elon Musk will be forced to meet with federal regulators to decide what he can and cannot tweet, a judge has ruled.
The latest order, filed by Judge Alison Nathan on Friday, follows a high-profile hearing on Thursday in which Musk’s lawyers and SEC prosecutors took turns sparring over what constitutes a material disclosure on social media.
"For the reasons stated on the record at oral argument yesterday, the parties are required to meet and confer for at least one hour in an effort to resolve the pending motion to hold Mr. Musk in contempt," her order said. "As well as any modifications to the consent judgment and Tesla’s Senior Executives Communications Policy."
Read more: Judge orders Elon Musk and the SEC to put on their ‘reasonableness pants’ and work things out
In September, Musk and the SEC agreed as part of a $20 million settlement to have some of the billionaire’s communications reviewed by in-house lawyers. The SEC asked Judge Nathan in February to find Musk in contempt of court for allegedly violating that agreement by tweeting 2019 production numbers that differed from the company’s official filings.
Elon Musk told reporters after the hearing Thursday that he was pleased with Judge Nathan’s decision.
"I have great respect for Judge Nathan, and I’m pleased with her decision today," he said in a statement distributed by Tesla. "The tweet in question was true, immaterial to shareholders, and in no way a violation of my agreement with the SEC. We have always felt that we should be able to work through any disagreements directly with the SEC, rather than prematurely rushing to court. Today, that is exactly what Judge Nathan instructed."
Musk and the SEC will be required to submit a joint letter "no later than April 18, 2019" outlining their agreement. If no agreement is reached, the court will issue a decision on the SEC’s motion to find Musk in contempt, the order said.
Shares of Tesla rose about 1.8% in trading Friday following Thursday’s hearing. You can read Business Insider’s minute-by-minute breakdown of the courtroom proceedings here.
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See Also:
- Elon Musk said he’ll probably reach a new settlement with the SEC in the next 2 weeks
- The SEC revealed the punishment it wants Elon Musk to face if he violates the terms of their settlement in the future
- JPMORGAN: Tesla just undermined Elon Musk’s defense against the SEC
SEE ALSO: Judge orders Elon Musk and the SEC to put on their ‘reasonableness pants’ and work things out
Source: Business Insider – grapier@businessinsider.com (Graham Rapier)