Elon Musk’s brain-implant startup Neuralink may have misled regulators about Musk’s leadership role
February 4, 2022 2:30 AM PST
Neuralink, the startup cofounded and run by Elon Musk that hopes to implant computer chips in people’s brains, may have misled federal securities regulators about the billionaire entrepreneur’s role at the company.
That’s according to government documents and Fortune interviews with securities lawyers and a half-dozen former employees of the company. The employees mostly spoke anonymously out of concern for violating nondisclosure agreements and possible retaliation from Musk.
The episode involves a 2018 letter in which an attorney representing Neuralink downplayed Musk’s leadership role at the company in a letter to the Securities and Exchange Commission. The attorney’s characterization contradicts former employees’ accounts, which depict Musk as very much in charge. Neuralink and the attorney involved in the filing did not respond to requests for comment.
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Some securities lawyers said that the incident could further antagonize the SEC, which has had a rocky relationship with Musk. It might also prompt Congress to look at the process by which the SEC grants certain waivers to companies looking to raise money through private share offerings.