Elon Musk’s Twitter shenanigans have actually landed him in difficulty — once again.
Law company Grant & Eisenhofer took legal action against the Tesla and SpaceX CEO on behalf of financiers Friday, declaring Musk’s “ongoing unchecked misstatements on Twitter have continued to harm the company and its shareholders,” according to a declaration.
Tesla didn’t right away react to an ask for remark.
The match, submitted in Delaware Court of Chancery, wishes to stop Musks’ “unchecked use of Twitter to make inaccurate statements” about Tesla. Grant & Eisenhofer is representing the Laborers’ District Council and Contractors’ Pension Fund of Ohio.
In August, the SEC submitted a suit versus Musk after he tweeted that he was considering taking the company private. The tweet stunned financiers, experts and Tesla’s board of directors, and he ultimately backtracked on the declaration. In September, Musk settled with the SEC and consented to pay a $20 million fine. He likewise stepped down as chairman of the business’s board.
In February, Musk remained in warm water once again after the SEC asked a court towhen he tweeted Tesla would make around 500,000 vehicles in 2019.
“Mr. Musk has continually disregarded all efforts to rein in his material misstatements on social media,” Grant & Eisenhofer director Michael Barry stated in the declaration. “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. His conduct has not only cost Tesla shareholders dearly but threatens to expose the company to even greater liability and litigation in the future.”
A public variation of the suit, which was submitted under seal, ought to be readily available by March 12, according to the company.