Tesla CEO Eles Musk and the board of directors of the electric car company have been sued by a shareholder who accused Musk of violating his 2018 settlement with the Securities and Exchange Commission over his Twitter use.
According to a complaint that was unsealed late in the pulpit court in Delaware on Thursday, Musk’s “volatile” tweets, including a report that Tesla’s share price was ‘too high’, and the failure of Tesla’s advice to comply with the SEC arrangement to monitor, exposed. shareholders up to billions of dollars in losses.
Tesla did not immediately respond to a request for comment.
The SEC’s settlement stemmed from Musk’s tweet in August 2018 that he was considering taking Tesla private and securing ‘financing’ for a possible $ 72 billion deal.
He and Tesla each agreed next month to pay $ 20 million in civil fines to settle with the regulator, and Musk agreed to have Tesla attorneys vet some of his tweets in advance.
According to the shareholder case, Musk continued to issue tweets without prior approval. It is intended to indemnify Musk and other Tesla directors for breaching their fiduciary duties.