Keith Higgins Discusses if Musk’s Tesla Tweet Violates SEC Rules Live on Closing Bell

In The News
August 15, 2018

On August 14, securities and governance practice chair Keith Higgins discussed whether Elon Musk’s Tesla go-private tweet violated SEC rules on CNBC’s “Closing Bell.” Mr. Higgins examines timing, what “funding secured” means and what the SEC believes a reasonable investor would have understood "funding secured" to have meant when deciding if he violated the law.

“The SEC could fine him and they could issue a cease and desist order that is the most likely scenario. Mr. Musk will be subject to private plaintiff suits, which I understand have already started, if in fact saying funding secured was materially misleading,” Mr. Higgins stated on potential punishments if a violation is found.