Tesla CEO Elon Musk and the Securities and Exchange Commission have reached a settlement in a case in which the billionaire SpaceX founder was charged with fraud, the Los Angeles Times reports.
Musk and Palo Alto-based Tesla agreed to pay a total of $40 million to settle the case, and he will give up his chairmanship for at least three years. The electric-car maker also is required to install an independent chairman and two new board members, though Musk will remain on the board, according to terms of the settlement.
Musk and Tesla will each pay $20 million to settle the case; both reached the deal without admitting wrongdoing. The company declined to comment.
The SEC charged Musk with fraud Thursday, alleging that his tweets about taking Tesla private — at $420 a share — were “false and misleading.” As part of the lawsuit, the agency asked a federal court to remove him from the company’s leadership and ban him from running a public company.