Musk to re­sign as Tesla chair­man, stay on as CEO in $40M SEC deal

USA TODAY Weekend Extra - - FRONT PAGE -

Tesla and its CEO Elon Musk have agreed to pay a to­tal of $40 mil­lion and make a se­ries of con­ces­sions to set­tle a govern­ment law­suit al­leg­ing Musk duped in­vestors with mis­lead­ing state­ments about a pro­posed buy­out of the com­pany.

The set­tle­ment al­lows Musk to re­main CEO of the elec­tric car com­pany but re­quires him to re­lin­quish his role as chair­man for at least three years. Tesla must hire an in­de­pen­dent chair­man to over­see the com­pany.

The Se­cu­ri­ties and Ex­change Com­mis­sion an­nounced the set­tle­ment Satur­day, just two days after fil­ing a case seek­ing to oust Musk as CEO.

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