Tuesday, September 22, 2020
Home Lead Story Tesla Investors Sue Musk, Say His 'Unchecked' Tweets Hurting Company

Tesla Investors Sue Musk, Say His ‘Unchecked’ Tweets Hurting Company

In August 2018, the US SEC filed a lawsuit against Musk after he tweeted that he was considering taking the company private

A group of institutional investors in Tesla has sued CEO Elon Musk, alleging that his repeated “misstatements on Twitter” continue to harm the company and its shareholders.

According to a report in CNET late Friday, the investors sued the Tesla and SpaceX CEO, saying Musk’s “ongoing unchecked misstatements on Twitter have hurt the electric car maker.

“Musk has continually disregarded all efforts to rein in his material misstatements on social media,” law firm Grant and Eisenhofer Director Michael Barry, representing the investors, said in the statement.

“He has ignored federal court orders, a settlement with the SEC (Securities and Exchange Commission), and even his company’s own corporate policies expressedly requiring that any of his tweets regarding Tesla be pre-screened.

“His conduct has not only cost Tesla shareholders dearly but threatens to expose the company to even greater liability and litigation in the future,” the statement further said.

Tesla was yet to comment on the lawsuit.

tesla
Visitors inspect Tesla electric cars at Brussels Motor Show, Belgium, Jan. 18, 2019. VOA

The US SEC in February asked a US federal judge to hold Musk in contempt for violating a settlement deal reached in 2018.

The development came in response to Musk’s tweet on February 19 that “Tesla made 0 cars in 2011, but will make around 500K in 2019”.

Hours later, the billionaire sent a follow-up tweet indicating that the company will actually deliver just 400,000 cars this year.

Also Read- YouTube Testing a “Fact Check” Alert For Sensitive Searches in India

The US regulators slammed the Tesla CEO because he “once again published inaccurate and material information about Tesla to his over 24 million Twitter followers”.

In August 2018, the US SEC filed a lawsuit against Musk after he tweeted that he was considering taking the company private. (IANS)

STAY CONNECTED

19,145FansLike
362FollowersFollow
1,775FollowersFollow

Most Popular

Self-Driving Cars To Navigate Rush Hour Traffic On This Planet: NASA

A laser-based technology designed to help spacecraft land on a proverbial dime for missions to the Moon and Mars is also helping self-driving cars...

Choose Correct Diet And Workout To Stay Motivated: Actor Sunny Singh

Actor Sunny Singh says when you choose the correct diet and workout, you will always be motivated. "It's been quite a long that I've been...

ICAR Builds Technology To Make Bacteriophages To Control Shrimp Diseases

The ICAR-Central Institute of Brackishwater Aquaculture (CIBA) on Monday said it has transferred its technology to make bacteriophages, or viruses that eat bacteria, to...

NEP Arrived When India Is Redefining Itself As “Atmanirbhar Bharat”

The New Education Policy (NEP) has infused a new wave of optimism with the vision of strengthening the education system, branching out into varied...

Venom Of Largest Spiders To Help Irritable Bowel Syndrome Patients

The venom from one of the largest spiders in the world may bring the hope to ease the gut pain suffered by millions of...

Ketogenic Diet May Reduce Risk of Alzheimer’s Disease

Eating healthy, low calorie food could help fight the fungi in the gut and thus reduce the risk of dementia among senior citizens, doctors...

45% of the Top 100 Google Searches Related to Travel Amid Pandemic

After living months in isolation during the pandemic, the travel bug has hit millions of people and according to Google, 45 per cent of...

Bollywood Kills, Sexually Abuses: Debates Parliament

Bollywood kills, Bollywood sexually abuses', were some of the allegations that resonated in the Parliament House complex on Monday. BJP Rajya Sabha member Roopa Ganguly,...

Recent Comments