It looks like part of the infamous “Funding Secured” tweet saga may finally be coming to an end, with payments to affected investors being confirmed in the coming weeks
The settlement payments stemmed from the 2018 Securities and Exchange Commission (SEC) settlement with Musk and Tesla. This settlement saw both parties pay $20 million as a result of the tweet and its actions on the market.
In a filing with the court, the SEC has asked the court to pay out the $41.53 million settlement to the 3,350 eligible claimants. This works out to around $12,400 per investor. Per Reuters, the initial 40 million is included along with interest accumulated since 2018. Fees, taxes and expenses will also come from the settlement costs.
The judge has already noted he will endorse the plan. If Musk or Tesla do not object, the payments will be approved by September 1.
Finally, the settlement money does not affect the other ongoing litigation with Musk and the SEC. Musk is considering appealing a Federal Appeals Court ruling over the consent decree muzzling his free speech with the US Supreme Court. The consent decree requires Tesla lawyers to review some Tweets before they go out, along with other restrictions.
Neither Tesla nor Musk have commented publicly on the filing.
