In December 2021, the Securities and Exchange Commission (“SEC”) announced that Nikola Corporation (“Nikola”) agreed to pay $125 million to settle charges that the company allegedly defrauded investors and misled them about its products, technical advancements, and commercial prospects. Nikola did not admit or deny the SEC’s findings. Earlier that same year, the SEC filed … Continue reading
When Elon Musk, the Chairman and Chief Executive Officer of Tesla, Inc. (“Tesla”), posted to social media on August 7, 2018, that he was considering taking Tesla private at $420 per share and had secured funding, he caused a ripple in the markets and gained the attention of the United States Securities and Exchange Commission … Continue reading
Background The Securities and Exchange Commission (“SEC”) adopted the final rules of Regulation Crowdfunding (the “Regulation”) on October 30, 2015. While the final rules have been adopted, they do not become effective until May 16, 2016. The Regulation is meant to expound upon Sections 4(a)(6) and 4A of the Securities Act of 1933 (the “Act”), … Continue reading