Judge tells Tesla, SEC to justify settlement of fraud lawsuit
A New York district court judge has asked Tesla Inc
Judge Alison Nathan said it was a regular practice at the Southern District of New York Court to ask for a joint statement.
Shares of the company fell 5 percent to $280.03 in afternoon trading on Thursday.
Tesla and Musk have agreed to pay $20 million each to the regulator under a settlement for a securities fraud lawsuit related to Musk`s Aug. 7 tweet about taking the electric carmaker private, in which he said he had funding "secured".
As part of the settlement, Musk will also step down as the company`s chairman but remain chief executive.
The SEC charged Musk with misleading investors with the tweet, saying it had no basis in fact.
"The Court has a duty to ensure the proposed consent judgment is "fair and reasonable", Judge Nathan wrote in the order, numbered 18-cv-08865-AJN.
The SEC and Tesla did not immediately respond to request for comment.
Separately, the company said http://bit.ly/2RpaRU1 it would publicly release accident figures for its vehicles on a quarterly basis.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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