The Securities and Exchange Commission is suing Tesla CEO Elon Musk for fraud, reports NBC. Sources close to the company told NBC that the company was expecting to be sued as well, though Tesla was not named as a defendant in the complaint.
On Thursday, shares of the automaker fell about 11 percent. The stock is roughly 30 percent below its 52-week high of $387.46.
The SEC claims that Musk issued “false and misleading” statements and failed to properly notify regulators of material company events, reports NBC. The SEC is seeking to bar Musk from serving as an officer or director of a publicly traded company if found guilty, among other remedies.
Musk says that the allegations against him are “unjustified” and claims he “never compromised” his integrity.
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