Tesla CEO Elon Musk and his electric car company, have agreed to pay a total of $US40 million to settle a US government lawsuit which alleges that Musk tricked investors with misleading statements about a proposed buyout of the company.
The settlement will also require Musk to give up his role as chairman for at least three years.
The U.S Securities and Exchange Commission announced the settlement just two days after filing a case seeking to remove Musk as CEO.
However, the deal reached allows Musk to remain as chief executive.
Musk, a billionaire, and Tesla, a company that ended June with $US2.2 billion in cash, are each paying $27.5 million to resolve the case.
[Source:ABC]
