Reported 4 months ago
Elon Musk has been accused of insider trading for selling $7.5 billion worth of Tesla stock before releasing disappointing sales data that caused the share price to drop to a two-year low. Shareholder Michael Perry filed a lawsuit alleging that Musk and the board knowingly sold shares in violation of their duties. The lawsuit seeks the return of Musk's estimated $3 billion illegal gains and damages from all eight directors. This lawsuit adds to Musk's legal troubles following the voiding of his 2018 compensation deal vote. The allegations center on claims that Musk needed to cover a loan for purchasing Twitter and had inside knowledge about the company's weak Q4 sales, which were lower than expected despite Musk's positive public statements.
Source: YAHOO