SAN FRANCISCO – Tesla was hit by a lawsuit over CEO Elon Musk’s posts on social media, including his Twitter poll on stock sales that lowered its stock prices.
Tesla investor David Wagner has called for access to internal documents to investigate whether Tesla and Musk violated an agreement with the U.S. Securities Regulator and its board members did not meet their fiduciary duties.
In 2018, Musk settled a lawsuit from the Securities Authority for his tweet about transferring the company to private, and agreed to the company’s lawyers to pre-approve tweets with material information about the company.
Tesla shares, which hovered close to record highs, lost about a quarter after Musk said on Nov. 6 that he would sell 10 percent of his shares if Twitter users agreed. It has since sold nearly $ 14 billion worth of stock so far.
The lawsuit, filed Thursday in Delaware Court, seeks to obtain records and books related to his tweets, including documents to identify whether the shares’ tweets have been reviewed or approved in advance.
In March, another shareholder sued Musk and his board in March, accusing him of violating his 2018 settlement with the SEC and exposing shareholders to billions of dollars in losses.
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Keyword: Tesla faces investor lawsuit over Musk’s tweets over 10% stock sales