Subject category:
Strategy and General Management
Published by:
NACRA - North American Case Research Association
Length: 21 pages
Topics:
Corporate governance
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https://casecent.re/p/196816
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Abstract
In April 2019, Robyn Denholm, the chairperson of Tesla, Inc's board was asked by a judge to work with the United States Securities and Exchange Commission (SEC) to settle the contempt of court charges brought by the agency regarding Elon Musk's, the CEO, use of Twitter to make factually incorrect market-moving tweets about the company's prospects. The contempt charge was about a violation of protocol that was set up following an adverse 2018 verdict against the company on a similar charge. Denholm and Tesla's board had to act against the backdrop of several factors, including Musk's tremendous popularity among his 24 million Twitter followers, a soaring Tesla stock price, and an ongoing defamation lawsuit that stemmed from a Musk tweet after a daring rescue of a stranded Thailand soccer team by a British diver in 2018. In settling with the SEC, the board had to consider a variety of options, including the nuclear option of firing Musk that was suggested by a Tesla investor.
Geographical setting
Country:
United States
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Abstract
In April 2019, Robyn Denholm, the chairperson of Tesla, Inc's board was asked by a judge to work with the United States Securities and Exchange Commission (SEC) to settle the contempt of court charges brought by the agency regarding Elon Musk's, the CEO, use of Twitter to make factually incorrect market-moving tweets about the company's prospects. The contempt charge was about a violation of protocol that was set up following an adverse 2018 verdict against the company on a similar charge. Denholm and Tesla's board had to act against the backdrop of several factors, including Musk's tremendous popularity among his 24 million Twitter followers, a soaring Tesla stock price, and an ongoing defamation lawsuit that stemmed from a Musk tweet after a daring rescue of a stranded Thailand soccer team by a British diver in 2018. In settling with the SEC, the board had to consider a variety of options, including the nuclear option of firing Musk that was suggested by a Tesla investor.
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Geographical setting
Country:
United States