Tesla investor sues Musk over Twitter posts

The company’s investor for the production of cars Tesla sued the company’s founder Elon Musk and the board of directors for publications on Twitter that violate agreements with the US exchange regulator-the Securities and Exchange Commission (SEC), reports Bloomberg with reference to the filed lawsuit.

The lawsuit was reportedly filed on March 8.

According to the lawsuit, Musk’s “misconduct” and the “failure of the Tesla board of directors to comply with the requirements” of the exchange regulator “caused significant damage” to the company, including significant legal sanctions and “the loss of billions of dollars due to market capitalization.”

The investor said that Musk repeatedly violated the terms of the agreement with the US Securities and Exchange Commission, signed in 2018. He noted that despite the restrictions imposed by the regulator, the Tesla founder “continued to publish responses without the necessary prior approval.”

Musk has previously had problems with Twitter posts. The U.S. Securities and Exchange Commission sued Musk, saying that he violated the agreement’s terms with the regulator by publishing important information about the company on Twitter without prior approval.

Musk in 2018 agreed with the commission, which accused him of securities fraud. This led to an incident on Twitter when Musk said he was ready to make Tesla a non-public company for $ 420 per share. This was not subsequently confirmed. These statements led to sharp fluctuations in the share price of Tesla, in which Musk is the largest shareholder.

Under the terms of the agreement, the commission refused to sue the businessman, but the Tesla masks paid a $ 20 million fine. Musk also stepped down as chairman of the board of directors. Also, it has pledged to coordinate with the regulator information on social networks that is of significant importance to shareholders.

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Author: Steve Cowan
Graduated From Princeton University. He has been at the Free Press since October 2014. Previously worked as a regional entertainment editor.
Function: Chief-Editor

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