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| The second richest man in the world faces new lawsuits |
(Elon Musk) The second richest man in the world, Elon Musk, faces a new lawsuit from Tesla shareholders. Tesla was accused of violating the US Securities and Exchange Commission via Twitter. (SEC) 2018 Settlement Agreement.
According to a Delaware court petition, the petition also identified the Electric Vehicle Company's board of directors as the defendant. Tweets from the second richest man in the world and a Tesla manager failing to ensure his compliance with the US Securities and Exchange Commission. Settlement agreement puts shareholders at risk. Billions of dollars in losses.
The complaint highlighted several posts on the social media platform, the world's second-richest man, Twitter, including in May that Tesla's share price was too high, resulting in Tesla's market value plummeting by more than $ 13 billion.
Attorney General Chase Griti said that Musk's actions and the manager's inaction have caused huge economic losses, which is why they must pay Tesla for breaching its fiduciary duties.
Tesla's stock price has risen nearly five times since Musk's tweet, raising Tesla's value to $ 600 billion, and the U.S. Securities and Exchange Commission has not recently accused Musk publicly of wrongdoing.
The new lawsuit could force the SEC to open some form of litigation, said Charles Elson, a professor at the University of Delaware who specializes in corporate governance.
After Musk tweeted in August 2018, the Securities and Exchange Commission reached an agreement and secured funding to turn Tesla into a private company in a $ 72 billion deal.
Musk and Tesla each paid a $ 20 million fine, and Tesla's lawyers agreed to review some of Musk's tweets.
Due to unconfirmed tweets from Musk about Tesla's production expectations, the settlement agreement was later amended to clarify when initial approval would be required.
The settlement agreement allows Mask to Tweet as needed, unless it concerns a specific event or financial event.