Tesla Inc Chief Executive Elon Musk and the board of the electric car company have been sued by a shareholder who accused Musk of violating his 2018 settlement with the U.S. Securities and Exchange Commission over his Twitter.
Complaint
Musk’s “erratic” tweets, including a post last May 1 that Tesla’s stock price was “too high,” and the failure of Tesla’s board to monitor his compliance with the SEC settlement have exposed shareholders to billions of dollars of losses.
The SEC settlement stemmed from Musk’s August 2018 tweet that he was considering taking Tesla private and had “funding secured” for a possible $72 billion transaction.
He and Tesla each agreed the following month to pay $20 million in civil fines to settle with the regulator, and Musk agreed to have Tesla lawyers vet some of his tweets in advance.
Shareholder Lawsuit
“Musk has continued issuing tweets without the required advance approval.
It seeks to have Musk and other Tesla directors pay damages to the company for breaching their fiduciary duties.”
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