Securities Law News

SEC’s Lineup of Barred CEOs: Holmes, Stewart, and Now Musk? (1)

Sept. 28, 2018, 4:20 PM; Updated: Sept. 28, 2018, 6:41 PM

Elon Musk could soon join the likes of Elizabeth Holmes and Martha Stewart as CEOs barred from serving as corporate officers or directors, if the SEC has its way.

The bar is among penalties the Securities and Exchange Commission asked for in its complaint against Musk for an Aug. 7 tweet on taking Tesla Inc. private.

The SEC “almost always” seeks an officer and director bar “if an officer of a public company is charged with a violation of the antifraud provisions,” Gerald Hodgkins, a former SEC Enforcement Division associate director, told Bloomberg Law.

The agency, which has had the...

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