Musk's lawyers say tweet complied with SEC fraud settlement

Elon Musk Tesla graphic by MGN.
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DETROIT (AP) - (03/12/19) - Attorneys are telling a federal judge that Tesla CEO Elon Musk should not be found in contempt because he didn't violate a securities fraud settlement.

The attorneys wrote in documents filed Monday night that a Feb. 19 tweet by Musk merely restated prior disclosures on electric car production volumes. They wrote that the tweet after the markets closed did not disclose material information, nor did it alter the mix of data available to investors.

A U.S. District Court judge in New York ordered Musk to respond by Monday to a motion for contempt filed by the Securities and Exchange Commission.

The agency alleges the tweet was inaccurate and violated a requirement for tweets that could influence Tesla's stock price to be approved by a company lawyer.

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