The U.S. Securities & Exchange Commission (SEC) has announced it is finally paying out the $40 million settlement received from Tesla and CEO Elon Musk four years ago.
In a press release announcing what is referred to as the Fair Fund, the SEC says anyone who purchased or acquired Tesla (TSLA) shares between 12:48:16 p.m. EDT on August 7, 2018 and 4:00 p.m. EDT on August 8, 2018 may be eligible for a payout from the fund.
The fund, which was originally supposed to $40 million, has grown to more than $41.2 million thanks to the interest earned since the time Tesla and Elon Musk each paid $20 million in 2018.
The $40 million payment was agreed to by all parties after an investigation into Musk’s now infamous tweet that he had “funding secured” to take Tesla private at $420 per share.
Musk has since voiced his displeasure with how that investigation was handled, saying during a recent interview in Vancouver that the agency continued on their path despite knowing that he did have the required funding.
Musk went on to explain that the only reason he agreed to settle with the SEC was because banks were saying that if he did not settle they would stop providing capital to Tesla, something which would have killed Tesla because of its precarious financial position at the time.
To receive a payment from the Tesla Fair Fund, here are the exact requirements according to the SEC:
1) You must have purchased or acquired Tesla common stock, listed on a U.S. exchange and registered with the Commission and traded under the symbol TSLA, during the Relevant Period;
2) Your approved transactions must calculate to a Recognized Loss Amount pursuant to the Plan of Allocation and the Distribution Payment must equal or exceed $10.00; and
3) You are not an Excluded Party as defined in the Plan of Distribution (the “Plan”).
If you believe you qualify based on the above description, you can file a claim online at www.SECvTeslaFairFund.com.
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