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Elon Musk and Tesla Board Sued over Erratic Tweets Violating U.S SEC Agreement
Welcome to The Outwrite Podcast, This article is published on "theoutwrite.com" by Varun Singh Rajput. Elon Musk is a well-known genius for the amazing products and his sight for the future. But he is also popular for erratic tweets, which have cost a fortune to Tesla and created some legal troubles for himself in the last couple of years. There is another lawsuit that came in a notice on Friday that was originally filed on March 8. A Tesla investor, Chase Gharrity suing Tesla and Elon Musk for the "Erratic Tweets" which violated United States SEC (Security and Exchange Commission) settlement.
It all started way back in 2018 with Elon's tweet, "Am considering taking Tesla private at $420. Funding secured." The Security and Exchange Commission did take action and launched a complaint marking this tweet as "False and Misleading".
According to TechCrunch, the filing from the Southern District of New York on 27th September 2018, had the following remarks mentioned in the complaint: "Musk’s statements disseminated via Twitter falsely indicated that should he so choose, it was virtually certain that he could take Tesla private at a purchase price. It reflected a substantial premium over Tesla stock’s then-current share price, that funding for this multi-billion dollar transaction had been secured. And that the only contingency was a shareholder vote.
After a long legal battle, Tesla and the SEC agreed to allow Elon Musk to tweet with certain limitation, clearly states not to post anything around the financial states of the company. Tesla paid a $20 Million fine, appointed two independent directors to monitor Elon's movements in media even via Twitter. Elon stepped down as Tesla Chairman for at least three years.
Bloomberg Law expert Peter Rasmussen stated, " Musk might have a hard time winning over the Delaware Chancery Court. With all the chances that Musk has been given, it is quite possible that the Chancery Court will have little patience with his latest tweeting adventures.
Now the lawsuit filed by Chase Gharrity over several tweets has a specific tweet for May 1, 2020, in which Elon tweeted, "Tesla stock price is too high." It destructed $14 billion worth of Tesla's market capitalisation in a single day. It clearly states that Elon Musk's erratic actions over social media especially via Twitter around financial milestones have caused "substantial damage" to the company.
Thanks for your time, please share your valuable feedback & comments - our email address is: [email protected].
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By Varun Singh Rajput
5
66 ratings
Welcome to The Outwrite Podcast, This article is published on "theoutwrite.com" by Varun Singh Rajput. Elon Musk is a well-known genius for the amazing products and his sight for the future. But he is also popular for erratic tweets, which have cost a fortune to Tesla and created some legal troubles for himself in the last couple of years. There is another lawsuit that came in a notice on Friday that was originally filed on March 8. A Tesla investor, Chase Gharrity suing Tesla and Elon Musk for the "Erratic Tweets" which violated United States SEC (Security and Exchange Commission) settlement.
It all started way back in 2018 with Elon's tweet, "Am considering taking Tesla private at $420. Funding secured." The Security and Exchange Commission did take action and launched a complaint marking this tweet as "False and Misleading".
According to TechCrunch, the filing from the Southern District of New York on 27th September 2018, had the following remarks mentioned in the complaint: "Musk’s statements disseminated via Twitter falsely indicated that should he so choose, it was virtually certain that he could take Tesla private at a purchase price. It reflected a substantial premium over Tesla stock’s then-current share price, that funding for this multi-billion dollar transaction had been secured. And that the only contingency was a shareholder vote.
After a long legal battle, Tesla and the SEC agreed to allow Elon Musk to tweet with certain limitation, clearly states not to post anything around the financial states of the company. Tesla paid a $20 Million fine, appointed two independent directors to monitor Elon's movements in media even via Twitter. Elon stepped down as Tesla Chairman for at least three years.
Bloomberg Law expert Peter Rasmussen stated, " Musk might have a hard time winning over the Delaware Chancery Court. With all the chances that Musk has been given, it is quite possible that the Chancery Court will have little patience with his latest tweeting adventures.
Now the lawsuit filed by Chase Gharrity over several tweets has a specific tweet for May 1, 2020, in which Elon tweeted, "Tesla stock price is too high." It destructed $14 billion worth of Tesla's market capitalisation in a single day. It clearly states that Elon Musk's erratic actions over social media especially via Twitter around financial milestones have caused "substantial damage" to the company.
Thanks for your time, please share your valuable feedback & comments - our email address is: [email protected].