Musk Accused of $7.5 Billion of Insider Trades in Investor Suit
Musk Accused of $7.5 Billion of Insider Trades in Investor Suit
Elon Musk Accused in $7.5 Billion Insider Trading Lawsuit
Allegations of Insider Trading
Musk allegedly used nonpublic information about Tesla's performance to profit from stock sales.
Breach of Fiduciary Duty
The lawsuit claims Musk breached his duties to Tesla and its shareholders by exploiting his position.
Legal Recourse Sought
Investor Michael Perry has requested the court to compel Musk to return his profits from the trades.
Ongoing Legal Challenges
This case adds to Musk's continued legal disputes, including SEC investigations and prior conflicts over his tweets.
How did Elon Musk allegedly exploit his position at Tesla according to the lawsuit?
According to the lawsuit filed by Tesla investor Michael Perry, Elon Musk allegedly exploited his position at Tesla by using nonpublic information about the company missing its fourth-quarter targets in 2022 to sell part of his Tesla stake1. The suit claims that Musk used the funds from this sale to bolster his buyout of the social media platform X, then known as Twitter. By relying on this inside information, Musk breached his fiduciary duties to the company and its shareholders, profiting from his misconduct and exploitation of material and adverse inside information. The lawsuit asks the court to order Musk to return the profit from his allegedly improper trading back to the company.
What remedy is Michael Perry seeking from Judge Kathaleen St. J. McCormick regarding Elon Musk's alleged profit from Tesla stock sales?
Michael Perry is seeking an order from Judge Kathaleen St. J. McCormick for Elon Musk to return the profit from his allegedly improper trading to the company. Perry alleges that Musk exploited his position at Tesla and breached his fiduciary duties to the company and its shareholders by using nonpublic information when selling part of his Tesla stake for funds to bolster his buyout of the social media platform X, then known as Twitter.