Realist, not conformist analysis of the latest financial, business and political news

An Interesting Thought – Has Elon Musk Breached Securities Laws By Making Tesla Announcements On Twitter?

There’s at least an arguable case that Elon Musk has breached securities laws by announcing various Tesla plans and ideas upon Twitter.

One final note that makes me chuckle. Elon made his big announcement on Twitter. He has also blocked a lot of people on Twitter–including me in 2013 or 2014. Well, selective disclosure of public information–giving it to some people earlier than others–violates Reg FD (“Regulation Fair Disclosure”). So by (a) blocking me (and many others) on , and (b) running his big brain waves through, Twitter, Elon might have committed other securities violations.

Hahahaha.

This is entirely different from whatever might be true of using Twitter rather than EDGAR, or making announcements before deals are fully finalised and so on. Purely, if some are blocked by Musk on Twitter and announcements are made on Twitter then is that selective delivery of the information?

0 0 vote
Article Rating
Total
0
Shares
Subscribe
Notify of
guest
4 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Spike
2 years ago

In the WorldCom and Enron scandals, where companies engaged in fraud and self-dealing (but also some mere cheerleading), we were horrified to see George W. Bush jump on the bandwagon and give the final push to the enactment of Sarbanes/Oxley, a crackdown on the innocent with new restrictions on communications from the board-room. Like the “Fairness Doctrine,” these restrictions are most easily complied with by abstinence — leaving shareholders in total darkness except for scheduled quarterly disclosures. Surely, Musk violated these rules. Just as surely, the rules should not exist. Everyone would like to trade in a market where everyone… Read more »

BniC
BniC
2 years ago

I think it was Jobs who called sarbanes-oxley the biggest bucket of sand thrown into the gears of America’s economy, then promptly backed down and apologised to the SEC
It is a big stick for finance to use to beat other departments into compliance

Quentin Vole
Quentin Vole
2 years ago

S-Ox was designed to correct the failures of auditing in uncovering misbehaviour at (in particular) Enron, by creating huge new opportunities for auditors.

Spike
Spike
2 years ago

In the WorldCom and Enron scandals, where companies engaged in fraud and self-dealing (but also some mere cheerleading), we were horrified to see George W. Bush jump on the bandwagon and give the final push to the enactment of Sarbanes/Oxley, a crackdown on the innocent with new restrictions on communications from the board-room. Like the “Fairness Doctrine,” these restrictions are most easily complied with by abstinence — leaving shareholders in total darkness except for scheduled quarterly disclosures. Surely, Musk violated these rules. Just as surely, the rules should not exist. Everyone would like to trade in a market where everyone… Read more »

Can you help support Continental Telegraph?

If you can spare a few pounds you can donate to our fundraising campaign below. All donations are greatly appreciated and go towards our server, security and software costs. 25,000 people per day read our sites and every penny goes towards our fight against the Establishment. We don't take a wage and do what we do because we enjoy it and hope our readers enjoy it too.


Donate
4
0
Would love your thoughts, please comment.x
()
x