Elon Musk Settles After Being Sued for Securities Fraud

After being sued by the Securities and Exchange Commission on allegations of security fraud, Elon Musk settles.

On Thursday the SEC filed a lawsuit against Elon Musk over a tweet made last week, in the tweet Musk claimed that he had secured funding in order to take Tesla private for $420 a share, when in reality he hadn’t and his tweet misled investors.

Tesla’s shares have been taking a beating this past week especially on Friday, when they dropped by almost 14%.

Under the settlement for the lawsuit, Musk would resign as Tesla’s chairman for 3 years and pay a hefty $20 Million fine but will remain CEO of the company.