Tesla’s CEO Elon Musk Sued for Fraud
OREANDA-NEWS Andrew Left is investor, founder and head of the analytical company Citron Research. He filed a lawsuit in the state of California to the head of Tesla, Elon Musk, accusing him of stock manipulation. It is reported by CNBC.
The lawsuit claimed that Musk manipulated the price of Tesla shares, giving false and misleading information. In early August, the head of Tesla allowed the withdrawal of the company from the exchange at $420 per share. In the event that the transaction took place, its value would be $72 billion.However, at the end of the month it became known that Musk abandoned this idea, in consultation with investors and members of the Board of Directors of Tesla.
"This is apparently a textbook case of fraud", — quotes the words of CNBC, Michael Canti, one of the lawyers of the law firm Labaton Sucharow, which represents the interests of the Left in court. "We believe that Musk tried to manipulate the value of the securities of Tesla using false and misleading tweets to cause damage to the sellers of the shares which are to decrease their cost," said Kanti. Musk currently owns about 22% of Tesla's shares.
According to the newspaper The Wall Street Journal, after the announcement of the Mask on the plans redemption of shares of Tesla, the Federal Commission on securities and stock exchanges of the USA the beginning of the test. The office intended to find out why Musk had made such a proposal on his Twitter rather than in an official document to be submitted to the regulatory body. It was also reported that the Commission checks whether the statement of the Mask was true and whether he had enough funds to carry out the operation to buy the shares.Previously, the Mask has filed lawsuit Tesla shareholders, who said that the posts of the businessman brought them a loss. According to them, after the announcement of the intention to buy the shares began sharp fluctuations in their rate. Investors had to buy securities at artificially high prices to cover their positions.