Sat 18 December 2021:
A lawsuit has been filed against Tesla as a result of CEO Elon Musk’s tweets.
Musk, who is known for making bold statements on social media, polled his followers on Twitter to see if they thought he should sell 10% of his Tesla stock.
Nearly 58 percent of the 3.5 million votes cast in the poll were in favor of him going ahead with the sale.
Now, Tesla investor David Wagner has accused Musk of violating an agreement with the US securities regulator.
He believes the company’s board members failed to adhere to their fiduciary duties and has filed for access to internal documents to investigate the matter at the Delaware Court of Chancery.
Under a September 2018 settlement with the US Securities and Exchange Commission, Musk was required to step down as chairman and pay $20 million to settle charges he defrauded investors with false claims on Twitter about the possible go-private transaction that was quickly aborted.
Musk, who is the world’s richest person, has sold just over 934,000 shares in Tesla, according to documents filed with US stock regulators. They were worth about $14 billion.
Wagner alleges that Tesla shares, which had hovered near record-highs, lost their value by about a quarter after the irresponsible tweets made by Musk.
Analysts said the 50-year-old South African billionaire’s stock sale will be liable for capital gains tax of at least $1.4 billion.
His tweets followed a proposal by US Congressional Democrats to tax the super-wealthy more heavily by targeting stocks, which are usually only taxed when sold.
SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES
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