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H. Peter Haveles, Jr. Quoted in The Verge Article, 'Elon Musk Might Be Held in Contempt of Court over a Tesla Tweet'

2/26/2019
H. Peter Haveles, Jr. Quoted in The Verge Article, 'Elon Musk Might Be Held in Contempt of Court over a Tesla Tweet'

H. Peter Haveles, Jr., a partner in the Trial and Dispute Resolution Practice Group of Pepper Hamilton, was quoted in the February 25, 2019 The Verge article, "Elon Musk Might Be Held in Contempt of Court over a Tesla Tweet."

Probably what will happen next will be a hearing, where a judge will hear arguments about whether Musk's conduct violated the settlement, says Peter Haveles, a partner at Pepper Hamilton in New York whose practice deals with commercial and regulatory disputes. If the judge finds that Musk violated the agreement, Musk will likely be fined.

"Mr. Musk will try argue that it's a one-time thing, and the issue will be, is that really the case?" Haveles says. "Will the SEC come forward with evidence from Tesla that they are struggling to get Mr. Musk to comply with the process?"

It's unlikely that Musk will face being barred from serving as a director or officer of a publicly traded company for the tweet, Haveles says. And the tweet doesn't rise to the level of criminal contempt, either, so Musk doesn't have to worry about jail time.

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