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Tesla CEO Elon Musk and the board of the electric car company were sued by a shareholder who accused Musk of violating his 2018 agreement with the Securities and Exchange Commission for his use of Twitter .
According to an unsealed complaint Thursday night at Delaware Chancery Court, Musk’s “erratic” tweets, including a May 1 post that said Tesla’s share price was “too high,” and the failure of the Tesla’s board of directors to monitor its compliance with SEC regulations disclosed shareholders to billions of dollars in losses.
Tesla did not immediately respond to a request for comment.
The SEC settlement stems from Musk’s August 2018 tweet that he was considering privatizing Tesla and had “secured funding” for a possible $ 72 billion deal.
He and Tesla each agreed the following month to pay $ 20 million in civil fines to be settled with the regulator, and Musk agreed to Tesla’s attorneys review some of his tweets ahead of time.
The shareholder lawsuit said Musk continued to post tweets without the required prior approval. He’s looking to get Musk and other Tesla directors to pay the company damages for breaching their fiduciary duties.
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