Elon Musk, Tesla board sued in lawsuit alleging ‘erratic’ tweets violate fiduciary duty
A Tesla investor is suing the company board and Musk for continuing to send “erratic tweets” that violate a settlement with the U.S. Securities and Exchange Commission that requires oversight of his social media activities.
The lawsuit, which was first reported by Bloomberg, claims Musk is exposing the company to potential fines and penalties from regulators and could drive down its share price.
Tesla, Musk and the SEC reached an agreement in April 2019 that gave the CEO freedom to use Twitter — within certain limitations — without fear of being held in contempt for violating an earlier court order. The agreement allows Musk to tweet as he wishes except when it’s about certain events or financial milestones.