A Tesla shareholder sued CEO Elon Musk, accusing him of violating his 2018 settlement with the US Securities and Exchange Commission (SEC) over his 'erratic' tweets.
The complaint spotlighted several of Musk's tweets, including his assessment in May that Tesla's share price was "too high", resulting in a more than $13 billion drop in Tesla's market capitalization.
The lawsuit was filed even though Tesla's share price has increased nearly five times since Musk's "too high" tweet, giving Tesla a much higher valuation of $600 billion, and the SEC has not publicly accused Musk of the recent violations.
https://twitter.com/elonmusk/status/1256239815256797184?s=20
The plaintiff, Chase Gharrity said that Musk's actions had caused significant financial damage, adding that they must pay compensation for breaching their fiduciary duties to American multinational cyber-security company Palo Alto.
SEC settlement followed Musk's August 2018 tweet that he had secured guaranteed funding for taking Tesla private in a $ 72 billion deal.
Tesla and Musk each paid $20 million in civil fines, and Tesla's attorneys agreed to pre-screen some of Musk's tweets.
Meantime, Tesla's share price dropped 0.84% to $693.73, down $189.36 from Jan. 26 all-time-high of $883.09.
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