A lawsuit has begun between Tesla CEO Elon Musk and the company’s shareholders. The case dates back to 2018, when the billionaire posted a tweet claiming he wanted to privatize Tesla.
The lawsuit began in California on Tuesday after Tesla shareholders sued Elon Musk over a 2018 tweet that claimed he was “considering privatizing Tesla” and “financing secured” leading to a dramatic takeoff the company’s share price and then to fall, when her statements did not really work, and investors lost money.
Twitter shareholders also sued Elon Musk in California in May 2022 following the completion of the takeover of the social network. Shareholders accuse the billionaire of deliberately attempting to “significantly drive down the value of Twitter shares” through tweets and public statements to pull out of the deal or renegotiate it.
Another lawsuit, filed in California in October 2022 on the same grounds, targets “false and misleading statements” the Tesla CEO allegedly made about whether he was going to close the Twitter deal before the CEO was finalized. signed in October.
The class action lawsuit was filed on behalf of shareholders who lost money selling their shares when Elon Musk caused Twitter’s stock price to plummet by casting doubt on the deal with his allegedly false public statements before finally closing the deal and raising the share price.
In April 2022, a Twitter shareholder sued Elon Musk in New York, also on behalf of the Twitter investors who sold their shares, alleging that the billionaire did not disclose his stake in Twitter within a deadline set by the Securities and Exchange Commission ( SEC). . By failing to meet this deadline, Elon Musk could have bought more Twitter shares at a lower price before revealing his share and raising prices.
Twitter shareholder Luigi Crispo sued Elon Musk in July 2022 for breach of contract to force him into a deal 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 with the lawsuits. In the Tesla lawsuit, Elon Musk risks losing billions of dollars. The billionaire has denied accusations against him in lawsuits by Twitter and Tesla.
According to the latest Forbes estimates, Elon Musk is worth $150.1 billion, making him the second richest person in the world after Bernard Arnault, CEO of LVMH. Elon Musk’s fortune has already taken a hit in recent months since the Twitter takeover as the billionaire lost his status as the world’s richest man and his net worth fell below $200 billion in November 2022. a drop in Tesla’s share price in a Twitter operation that raised concerns about Elon Musk’s involvement with the electric car company.
Elon Musk was previously tried in November 2022 in a separate lawsuit filed by Tesla shareholders that involved a salary package that the Tesla board of directors awarded him in 2018. The lawsuit to determine whether the pay package was unfairly high ended in mid-November, but the Delaware judge presiding over the case has yet to deliver a verdict.
Tesla shareholders first sued Elon Musk in 2018, days after the billionaire tweeted about his alleged plan to privatize the company. The tweet has already sparked a SEC complaint against Elon Musk, who was forced to step down as company chairman and whose tweets about the company must be verified by Tesla lawyers before they can be shared. The judge overseeing the trial of Tesla shareholders has already ruled that the billionaire “acted recklessly” with his tweet.
Elon Musk completed the 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 US – Posted by Alison Durkey.
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