It is claimed that Elon Musk has compensation for users who lost in the stock market after a Tweet about Tesla’s privatization.
Elon Musk lost a tweet to his users while he was dealing with federal securities fraud charges. It is said that Musk has a compensation for this.
Compensation suggestion from Elon Musk for users who experience loss
It was stated that the $42.3 million fund, established when Elon Musk resolved federal securities fraud charges, was a compensation measure for investors who lost money due to his tweet about Tesla’s privatization.
In Wednesday’s filing, the SEC announced that 3,350 plaintiffs damaged as a result of Musk’s tweet will receive a total of $41.53 million. This payment will recoup 51.7 percent of their losses. The remaining amounts will be reserved for miscellaneous fees, taxes and charges.
This “Fair Fund” is the result of a deal based on a tweet Elon Musk made in August 2018. Musk had taken this tweet stating that funds were provided for the purchase of Tesla in return for a premium. However, it did not fulfill this commitment and many investors suffered losses due to the fluctuations in Tesla stocks.
Initially $40 million, the fund was raised by Musk and Tesla to a total of $42.3 million, $20 million each, including interest.
US District Judge Lewis Liman in Manhattan, where the case is being administered, said he plans to approve the payments by September 1, or shortly after, without any objections.
The SEC deal also included a consent decision in which Musk resigned as Tesla’s chairman and Tesla’s lawyer had the authority to approve some Twitter posts.
Musk, who is the richest person in the world according to Forbes magazine, bought Twitter last October and changed his name to “X”. However, Musk tried to end this decision by calling it a “restriction” on freedom of expression. The federal appeals court in Manhattan, however, refused to overrule that order.
Musk is expected to appeal against this decision to the US Supreme Court.
