Bloomberg Law
March 12, 2021, 5:39 PMUpdated: March 12, 2021, 8:36 PM

Musk, Tesla Board Sued Over Tweeting in Violation of SEC Deal (2)

Mike Leonard
Mike Leonard
Legal Reporter
Andrew Ramonas
Andrew Ramonas
Corporate Disclosure Reporter

A Tesla Inc. investor sued CEO Elon Musk and its board in Delaware, claiming Musk has exposed the company to billions in potential liability and market losses by continuing to send “erratic” tweets, despite a settlement with regulators requiring pre-approval of his social media activity.

“Further unchecked tweeting by Musk” could “have severe ramifications on the company’s ability to secure financing,” and it “drives out the very voices in the company meant to stand up to him and protect” investors, the complaint says.

The 105-page derivative lawsuit, made public Friday in Delaware Chancery Court, accuses the electric vehicle maker’s board ...

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