Crimes in the Business World
Elon Musk and Tesla are being sued in civil court for securities fraud as a result of Musk, acting as CEO of the company, Tweeting that he had funding secured to take Tesla private at $420 a share. The stock price immediately leapt, which hurt short sellers, and then the share price crashed when Musk confessed that he did not in fact have funding secured. The Board did not know of Musks intentions when he made his claims on Twitter; however, the Board does have a role to play in the self-regulation of the company. The Board must demonstrate corporate management, so as to show that the company is not engaging in actions harmful to the interest of shareholders and is not engaged in unwarranted forms of self-dealing (Friedrichs 305). Because Musk was acting on his own when he informed shareholders of the false news of taking Tesla private, the company sought to have the case dismissed. U.S. District Judge Edward M. Chen in San Franciscorefused to toss the case and is allowing it to go forward. He stated clearly that the rise and fall of Teslas stock prices corroborated with the timing of the alleged false and misleading statements, all of which occurred within a less-than-two-week period, and which suggests Mr. Musks false statements were the proximate cause (Mitchell). Shareholders and short sellers are behind the civil suit and seek recompense for what they view as securities fraud on the part of Musk and Tesla.
Musk had been in a war of words with short sellers in the days leading up to his now notorious Tweet that shook the world of Tesla longs and shorts. Many big fund managers had been vocal about Musks management of Tesla and had called for the share price to be brought back to earth. Musk had vowed on Twitter to burn the shortsand his later Tweet about taking the company private did exactly that (Levine). When he Tweeted that he would take the company private at $420 per share, it caught everyone by surprise, and instantly the stock price began to rise. However, news began to trickle out from various sources that Musks reference to 420 was a marijuana-related joke and that his Tweet was not serious. Musk himself insisted the Tweet was serious and that he was in talks with Saudis to take the company private. The SEC even filed suit against Musk and settled out of court for $20 million. As a result of the settlement, Musk had to give up part of his control of Tesla (his Board position). He was allowed to remain as CEO, however.
Shareholders and short sellers were not amused. The share price declined once it became apparent that funding was indeed not secured. Initially, those displeased by Musks antics on Twitter hoped Musk would face a stiffer penalty than the wrist-slapping that was the settlement fine. Unsatisfied by the SECs attitude towards Musk, shareholders and short sellers united to sue in civil courtand that trial is now going to proceed. Tesla had tried to block it by arguing that Musk was acting as a shareholder and not as a representative of the company when he made his infamous Tweets. The Judge rightly saw that this was not an accurate defense. The trial will thus go forward.
Securities fraud is an important issue in the realm of public companies, where investors stand to make or lose a great deal of money based on the performance of a companys stock over time. Teslas Musk had made many promises about Tesla products and had attracted a lot of attention from short selling firmsfirms that look for fraudulent or misleading claims made by companies and exploit those mistakes by shorting the stock (borrowing shares to sell them and buy them back at a lower price after the stock price has fallen). Short sellers had to cover their positions when Teslas stock rose following Musks Tweets. Thus, in their minds, this constituted securities fraudand it appeared that the SEC viewed it in the same way. However, because the SEC settled its suit with Musk out of court, shareholders and short sellers saw that they needed to file a civil suit in order to obtain justice.
In a civil case, the prosecution merely has to show that there is a preponderance of evidence showing that the defendant is responsible for the losses accrued by the litigants. The Judge who allowed the trial to go forward appeared to side with those suing Musk and Tesla, for he saw a clear connection between Musks Tweets, the movement of the companys share price, and the possibility of losses incurred by both longs and shorts of Teslas stock. As this is a trial still in development, the final outcome is uncertain; but what is known is that in a civil trial, one does not have to prove anything beyond a reasonable doubt. One only needs to show enough evidence that a jury will conclude that the defendant is probably to blame.
Friedrichs, D. Trusted Criminals: White Collar Crime In Contemporary Society.
Cengage Learning, 2009.
Levine, M. Elon Musks funding. Bloomberg, August, 13, 2018.
Mitchell, Russ. Judge deems Musks funding secured tweet false and misleading. A
trial awaits. Los Angeles Times, April 15, 2020. https://www.latimes.com/business/story/2020-04-15/tesla-musk-funding-secured-trial
Get Professional Assignment Help Cheaply
Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?
Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.
Why Choose Our Academic Writing Service?
- Plagiarism free papers
- Timely delivery
- Any deadline
- Skilled, Experienced Native English Writers
- Subject-relevant academic writer
- Adherence to paper instructions
- Ability to tackle bulk assignments
- Reasonable prices
- 24/7 Customer Support
- Get superb grades consistently
Online Academic Help With Different Subjects
Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.
Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.
While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.
Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.
In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.
Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.
We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!
We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.
Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.
What discipline/subjects do you deal in?
We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.
Are your writers competent enough to handle my paper?
Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.
What if I don’t like the paper?
There is a very low likelihood that you won’t like the paper.
- When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
- We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.
In the event that you don’t like your paper:
- The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
- We will have a different writer write the paper from scratch.
- Last resort, if the above does not work, we will refund your money.
Will the professor find out I didn’t write the paper myself?
Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.
What if the paper is plagiarized?
We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.
When will I get my paper?
You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.
Will anyone find out that I used your services?
We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.
How our Assignment Help Service Works
1. Place an order
You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.
2. Pay for the order
Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.
3. Track the progress
You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.
4. Download the paper
The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.
PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET A PERFECT SCORE!!!