Results for: Securities Fraud

The Supreme Court has declined to review Elon Musk’s appeal of a settlement agreement with the Securities and Exchange Commission (SEC) that requires him to have certain social media posts about Tesla pre-approved by a company lawyer. The SEC had accused Musk of securities fraud following a 2018 tweet where he stated that he had acquired funding to take Tesla private, causing a spike in the company’s stock price. The tweet was deemed to be “false and misleading,” resulting in Musk being ordered to step down as Tesla’s chairman and pay a $20 million fine. The pre-approval requirement was also imposed to ensure the accuracy of Musk’s public statements.

Regulators in Colorado have filed a lawsuit against a restaurant group and a broker, alleging that they misled investors and duped them out of $380,000 after floating a nationwide expansion plan for a fast-casual Indian restaurant chain. The lawsuit alleges that the defendants used ‘half-truths and lies’ to convince investors to buy into a plan for a vast franchise network, promising returns as high as 2,900% and guaranteed quarterly dividends of 8%. However, after the sole Saucy Bombay location closed in 2015, the defendants allegedly continued seeking investments without disclosing the closure. None of the 17 investors received any dividends, and the state alleges that the restaurant group never intended to franchise the restaurant and instead used investor money for operating costs and other expenses. The lawsuit accuses the defendants of violating state securities laws by misleading investors, selling unregistered securities, and, in one case, selling securities without a license.

A class action lawsuit has been filed against Autodesk Inc. (ADSK) alleging that the company made materially false and misleading statements about its internal controls and financial performance during the period between June 1, 2023, and April 16, 2024. The lawsuit claims that Autodesk lacked adequate internal controls, leading to issues with its free cash flow and non-GAAP operating margin practices. As a result, the company’s statements about its business and prospects were allegedly false and misleading.