Elon Musk accused of $7.5B insider trading by Tesla investor (NASDAQ:TSLA)
What specific allegations has Michael Perry made against Elon Musk in the lawsuit filed in Delaware?
Michael Perry, a Tesla shareholder, has filed a lawsuit against Elon Musk in Delaware Chancery Court, accusing the CEO of insider trading4. According to the legal documents, Perry alleges that Musk sold over $7.5 billion worth of Tesla stock in November and December 2022, before the company's Q4 results were made public on January 2, 2023. The shareholder claims that Musk had non-public information about Tesla falling short on fourth-quarter deliveries and production at the time of the stock sale2.
Perry further argues that Musk "improperly benefited" by approximately $3 billion in profits from the alleged insider trading. The lawsuit states that if Musk had sold the shares after the negative financial news was released, the sales would have netted him less than 55% of the amount realized.
In addition to targeting Musk, the lawsuit also accuses Tesla directors of failing to fulfill their fiduciary duty by allowing the CEO to proceed with the share sales. Perry is asking Judge Kathaleen St. J. McCormick to order Musk to return the profits made from the alleged trades to the company.
On what dates did Elon Musk allegedly sell over $7.5 billion of Tesla stock, according to the lawsuit?
According to the lawsuit filed by Tesla investor Michael Perry, Elon Musk allegedly sold over $7.5 billion of Tesla stock in November and December 2022.
How much money does the lawsuit claim Elon Musk improperly benefited from the alleged stock sales?
The lawsuit claims that Elon Musk improperly benefited by $3 billion in profits from the alleged stock sales.