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Elon Musk man faces a new lawsuit

 


Elon Musk, the world's second-richest man, is facing a new lawsuit from a Tesla shareholder who accused him of violating a 2018 settlement with the U.S. Securities and Exchange Commission over his use of Twitter.

According to a complaint in the Delaware Chancery Court, which also designates the board of directors of the electric car company as defendants, the tweets of the world's second-richest man are irregular and Tesla managers failed to ensure compliance with the SEC settlement and exposed shareholders to billions of dollars in losses.

The complaint highlighted many of the world's second-richest men's posts on the social media platform Twitter, including his statement last May: Tesla's share price is too high, resulting in Tesla's market value falling by more than $13 billion.

"Musk's actions and the inaction of the managers caused significant financial damage, and they must pay Tesla damages for breaching their fiduciary duties," said chase charity.

The lawsuit was filed despite tesla's share price nearly fivefold since Musk's tweet, giving Tesla a much higher rating than $600 billion, and the SEC has not publicly accused Musk of recent abuses.

Charles Elson, a professor at the University of Delaware who specializes in corporate governance, said the new lawsuit could pressure the Securities and Exchange Commission to take some kind of litigation.

The SEC's settlement followed Musk's August 2018 tweet that he had secured funding to turn Tesla into a private company in a $72 billion deal.

Musk and Tesla each paid $20 million in civil fines, and Tesla lawyers agreed to examine some of Musk's tweets before they were posted.

The settlement was later amended to clarify when initial approvals were required, prompted by an unverified tweet from Musk about Tesla's production prospects.

The settlement allowed Musk to tweet as he pleased except when it comes to certain events or financial milestones.

Source:https://finance.yahoo.com/news/elon-musk-tesla-lawsuit-over-tweets-164548026.html

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