Another shareholder lawsuit against Elon Musk
Tesla CEO Elon Musk is once again in litigation with his shareholders. This time, a Tesla shareholder is accusing Elon Musk of insider trading.
He filed a lawsuit against Tesla shareholder Elon Musk, alleging $7.5 billion in insider trading.
In the lawsuit filed in the Delaware Court of Chancery, shareholder Michael Perry said that Musk learned of the lower-than-expected figures in mid-November 2022, thanks to his access to real-time data, and sold his shares before the information was made public.
Perry said Tesla's share price dropped after the company's fourth quarter figures were made public on January 2, 2023, and claimed that Musk made a profit of approximately $3 billion with insider information.
In the lawsuit, which said "#Musk exploited his position at Tesla and violated his fiduciary duties towards Tesla," the court was asked to direct Musk to return the profits from the transactions.
The lawsuit also accused #Tesla executives of breaching their fiduciary duties by allowing Musk to sell shares.
Musk and Tesla did not immediately respond to Reuters' request for comment.
“If (Musk) had waited for significant negative news to be published to make these sales, his sales would have earned him less than 55 percent of the amounts from his November and December 2022 sales,” the lawsuit said.
56 BILLION DOLLAR SALARY PACKAGE WAS CANCELED
On the other hand, #ElonMusk has been at the center of discussions about his salary package for a long time.
In 2008, Tesla shareholder Richard Tornetta filed a lawsuit against Musk's salary.
The years-long lawsuit was concluded and Musk lost his $56 billion salary package. The package, described by the board as an "inconceivable sum", was ruled unfair to shareholders.
The electric vehicle giant will hold its annual shareholder meeting on June 13, and shareholders will vote on whether to approve the payment package.
