The lawsuit between Tesla shareholders and Elon Musk has just begun
Tesla CEO Elon Musk’s lawsuit against the company’s shareholders has begun. The case dates back to 2018, when the billionaire posted a tweet claiming he wanted to take Tesla private.
The lawsuits began in California on Tuesday after Tesla shareholders sued Elon Musk over a 2018 tweet that he was “considering taking Tesla private” and that “financing was secured.” works and investors lose money.
Twitter shareholders also sued Elon Musk in California in May 2022 after the acquisition of the social network was completed. The shareholders accuse the billionaire of deliberately trying to “significantly depress Twitter’s stock” through tweets and public statements in order to withdraw from the deal or renegotiate it.
Another lawsuit filed in California in October 2022 on the same grounds targets “false and misleading statements” made by the Tesla CEO about whether or not the CEO would close the deal with Twitter. It will finally end in October.
The class-action lawsuit called into question the deal on behalf of shareholders who lost money by selling their shares when Elon Musk sent Twitter’s stock price down, before finally closing the deal and boosting the stock price, with allegedly false public statements.
In April 2022, a Twitter shareholder sued Elon Musk in New York on behalf of Twitter investors who also sold their shares, alleging that the billionaire did not disclose his stake in Twitter within the statutory period. Securities and Exchange Commission (DRY). By not meeting these deadlines, Elon Musk could have bought more Twitter stock at a lower price before his share announcement and price increase.
Luigi CrispoA Twitter shareholder sued Elon Musk for breach of contract in July 2022 to force him to agree to buy Twitter, and while most of the lawsuit was dismissed in October, some of Luigi Crispo’s claims are still pending.
Four lawsuits filed by Twitter shareholders against Elon Musk are still pending, and judges have yet to decide whether to dismiss the cases or continue the lawsuits. Elon Musk risks losing billions of dollars in Tesla lawsuit. The billionaire has denied the charges brought against him in the Twitter and Tesla lawsuits.
According to the latest estimates ForbesElon Musk’s net worth stands 150.1 billion dollarswhich makes him the second richest person in the world Bernard Arnault, CEO of LVMH. Elon Musk’s fortune has already taken a hit in recent months since his Twitter takeover, as the billionaire lost his status as the world’s richest man and saw his net worth drop below $200 billion in November 2022. Tesla’s share price plunge in a Twitter transaction has raised concerns about Elon Musk’s involvement in the electric car company.
Elon Musk was previously sued in a separate lawsuit filed by Tesla shareholders in November 2022 that targeted his 2018 pay package from Tesla’s board. The lawsuit, which sought to determine whether the pay package was unfairly high, ended in mid-November, but the Delaware judge presiding over the case has yet to issue a ruling.
Tesla shareholders first sued Elon Musk in 2018, just days after the billionaire was sued he tweeted about his alleged plan to privatize the company. The tweet led to an SEC lawsuit against Elon Musk, who must now step down as company chairman and clean up his tweets about the company before they can be shared by Tesla’s lawyers. The judge overseeing the lawsuit by Tesla shareholders has already ruled that the billionaire acted “recklessly” in his tweet.
Elon Musk completed his takeover of Twitter in October after months of turmoil following the disclosure of his majority stake in the company in April.
Article translated from Forbes USA – Author: Alison Durkee
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