From Investing.com: 2024-06-11 20:01:24

Elon Musk is being accused of making billions through insider trading by selling Tesla stock, prompting a lawsuit filed by the Employees’ Retirement System of Rhode Island. The lawsuit alleges that Musk and his brother sold $30 billion in stock before negative news was made public, resulting in artificially inflated prices.

The lawsuit comes ahead of a crucial vote to reinstate Musk’s $56 billion pay package that was previously voided by a Delaware judge in January. Musk is also under investigation for possible violations of federal securities laws related to his purchase of Twitter stock in 2022.

The Employees’ Retirement System of Rhode Island holds about 140,000 Tesla shares, worth around $24 million. Another shareholder, Michael Perry, has also filed a similar lawsuit against Musk for insider trading. ERSRI accused Musk of diverting Tesla resources to X and causing the company to spend on advertising on Twitter after he purchased the platform.

There are concerns that Tesla’s board of directors is not adequately overseeing Musk’s potential conflicts of interest, raising questions about the company’s governance and ethical practices. Musk and Tesla have yet to respond to the allegations made in the lawsuits, leaving the outcomes of the legal battles uncertain.



Read more at Investing.com: Tesla shareholder sues Musk to return billions in alleged unlawful profits By Reuters