Accusations Unveiled
Justin Sullivan
Billionaire investor Elon Musk finds himself entangled in a $7.5B insider trading lawsuit brought forth by a Tesla (NASDAQ:TSLA) shareholder, as per legal documents laid out in a Delaware court on Thursday.
The Alleged Transactions
Tech investor Michael Perry initiated the lawsuit, asserting that Musk, the CEO of the electric vehicle giant, disposed of over $7.5B worth of company shares in 2022 prior to the disclosure of its Q4 results on January 2, 2023, thereby leaving shareholders disheartened.
Claims and Counterclaims
Perry contended that Musk profited by a purported $3B from the said transactions executed in November and December 2022, quoting that the Tesla head “improperly benefited” from the situation. He further alleged that Musk took advantage of his position at Tesla and violated his fiduciary responsibilities to the company and its shareholders.
Lawsuit and Demands
Within the ambit of the lawsuit, Perry also pointed fingers at Tesla’s directors, accusing them of neglecting their fiduciary obligations by permitting Musk to proceed with the stock sales. The legal request presented to Judge Kathaleen St. J. McCormick implores Musk to reimburse the earnings garnered from the aforementioned trades.
