Tesla faces investor lawsuit over Musk tweets on 10% stock sales

San Francisco — Tesla was hit by a lawsuit in excess of CEO Elon Musk’s social media posts like his Twitter poll on inventory product sales that pulled down its inventory prices.

Tesla investor David Wagner referred to as for obtain to internal files to look into no matter if Tesla and Musk violated an settlement with the U.S. securities regulator and its board users failed to adhere to their fiduciary duties.

In 2018, Musk settled a lawsuit by the Securities and Trade Commission above his tweet on having the company non-public, agreeing to have the company’s lawyers pre-approve tweets with materials information about the organization.

Tesla shares, which experienced hovered near file-highs, lost their value by about a quarter following Musk reported on Nov. 6 he would market 10% of his stake if Twitter end users agreed. He has considering that marketed virtually $14 billion worthy of of shares so considerably.

The lawsuit, filed with the Delaware Court docket of Chancery on Thursday, seeks to acquire documents and textbooks relevant to his tweets, together with documents to establish no matter if the inventory sales tweets were being reviewed or pre-accepted in advance.

In March, a different shareholder sued Musk and its board in March, accusing him of violating his 2018 settlement with the SEC and exposing shareholders to billions of dollars of losses.

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