tech2 News StaffMar 11, 2019 12:36:49 IST
While Elon Musk may be one of the most entertaining CEOs on Twitter, he also releases "repeated misstatements", or so claim some of the people who've invested in Tesla.
A group of Tesla investors is reportedly taking Musk to court on the basis of the founder's "unchecked use of Twitter to make inaccurate statements about the company", according to a report by Bloomberg.
The investors seeks to permanently block Musk's Twitter account. “Mr Musk has continually disregarded all efforts to rein in his material misstatements on social media. He has ignored federal court orders, a settlement with the SEC, and even his company’s own corporate policies expressly requiring that any of his tweets regarding Tesla be pre-screened,” claimed the investors' lawyer.
Tesla made 0 cars in 2011, but will make around 500k in 2019
— Elon Musk (@elonmusk) February 20, 2019
Reportedly, Musks "unscreened" tweets not only cost Tesla shareholders dearly, but they also threaten to expose the company to even greater liability and litigation.
The suit is seeking a declaratory judgment that Musk and Tesla’s board breached their fiduciary duty over the Twitter posts, and shareholders are also seeking injunctive relief and monetary damages.
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