The Twitter deal is over but Elon Musk still has other legal issues
Elon Musk was forced during a months-long legal battle to buy Twitter, but there are still several lawsuits against the world’s richest person and electric car maker Tesla Inc, where he is CEO.
suit on twitter
Twitter investors sued Musk in May in federal court in San Francisco, alleging that he manipulated Twitter’s stock price by failing to disclose in March that he was accumulating shares in the social media platform. The Securities and Exchange Commission said it was investigating the timing of Musk’s disclosures.
Musk’s lawyers asked the court to dismiss the lawsuit, arguing that it is prohibited by federal securities law.
$55 billion Tesla lawsuit paid
A Tesla shareholder wants a judge to find that Musk’s Tesla wage package, estimated to be worth $55 billion, unfairly enriches Musk. The case is scheduled to go to trial on November 14 in Delaware court. Tesla said the salary aligns with Musk’s incentives for shareholders and has benefited investors.
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Both Tesla and Musk defend numerous allegations of workplace harassment and discrimination, including a lawsuit brought by the California Department of Fair Employment and Housing (DFEH).
In 2021, a jury awarded a black elevator operator who worked at Tesla’s factory in Fremont, California, $137 million in damages before ordering a new experiment. Separately, a Tesla shareholder filed a lawsuit against the company, claiming it did not adequately address workplace discrimination and harassment.
Tesla said it does not tolerate discrimination and has taken steps to address worker complaints.
Lawsuits sparked by Musk’s tweets
In August 2018, Musk tweeted that he had secured “secured funding” to make Tesla private, sending the stock soaring. The tweet sparked a series of lawsuits.
A 2018 US Securities and Exchange Commission lawsuit ended with Musk stepping down as Tesla’s president, fines paid and some of his tweets approved by a lawyer before they were posted.
Tesla shareholders are filing a lawsuit in Delaware to tighten censorship of Musk’s tweets about the company. In a separate ongoing case alleging that Musk inflated Tesla stock by making false statements, a San Francisco district court has found that the 2018 tweet was inaccurate and reckless.
JPMorgan Chase & Co. also sued Tesla in November for $162.2 million, saying it had to re-price orders for Tesla stock after the 2018 tweet. Tesla said the tweet was a personal statement to Musk and confronted the bank, arguing that it was seeking to obtain ‘Surprise gains’ and should have ended the arrest warrants instead of repricing them.
Investigations into driver assistance from Tesla
Tesla has reported 273 accidents with cars since July 2021, including with its advanced driving assistance systems, sparking investigations that include a US criminal investigation into allegations that cars can drive themselves, sources told Reuters.
Autopilot, Tesla said, “enables your vehicle to automatically steer, accelerate and brake within its lane,” while fully autonomous driving also allows vehicles to comply with traffic lights and make lane changes.
Litigation over solidarity
Tesla investors are appealing an April ruling by a Delaware judge who ruled that Musk had not unfairly enriched himself when he directed the company in 2016 to acquire SolarCity, where Musk was chairman and largest shareholder.
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Investors sought more than $10 billion in damages.
The Securities and Exchange Commission (SEC) opened an investigation in December into a whistleblower complaint that Tesla failed to properly notify shareholders and the public about the fire hazards of its solar panel systems.
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