MOSCOW, 12 Mar – RIA Novosti. Tesla's investor in the car manufacturing company has sued the founder of the company, Elon Musk, and the board of directors for Twitter posts that violate agreements with the American exchange regulator – the Securities and Exchange Commission (SEC), Bloomberg reports citing the filed court claim.
The lawsuit was reportedly filed on March 8.
According to the lawsuit, “Musk's misconduct” and “the failure of Tesla's board of directors to comply with the requirements of the” exchange regulator “caused significant damage” to the company, including significant legal penalties and “a loss of billions of dollars in 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 post tweets without the necessary prior approval.”
Musk previously had issues with Twitter posts. The US Securities and Exchange Commission was suing Musk, claiming that he violated the terms of an agreement with the regulator by posting important information about the company on Twitter without prior approval.
Musk in 2018 entered into an agreement with the commission, which accused him of securities fraud. This was led by an incident on Twitter when Musk announced that he was ready to make Tesla a non-public company at a price of $ 420 per share. This was not subsequently confirmed. These statements have 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 dropped the lawsuit against the businessman, but Musk and Tesla paid a $ 20 million fine each. Musk also stepped down as chairman of the board of directors. In addition, he undertook to coordinate with the regulator information on social networks, which is of significant importance to shareholders.