Institutional Shareholder Accuses Musk of Insider Trading, Demands Return of Gains
Tuesday, 11 June 2024, 23:57
Tesla Shareholder Lawsuit: Insider Trading Allegations
An institutional shareholder has accused Elon Musk of making billions through Tesla stock sales using confidential information. Musk and his brother Kimbal Musk sold a combined $30 billion in Tesla stock before negative information was made public.
Call to Return Profits
The Employees' Retirement System of Rhode Island has filed a lawsuit demanding the court to direct Elon Musk to return the alleged 'unlawful profits' from the insider trading activities.
Impact on Tesla
- Magnitude: The legal battle could affect Tesla's leadership stability and investor confidence.
- Reconsideration of Pay Package: The lawsuit highlights uncertainties over Musk's controversial $56 billion pay package, which is up for shareholder voting.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.