Musk accused of selling $7.5 billion of Tesla stock before releasing disappointing sales data that plunged the share price to two-year low
Musk accused of selling $7.5 billion of Tesla stock before releasing disappointing sales data that plunged the share price to two-year low
The Tesla CEO faces claims he pocketed $3 billion in ill-gotten gains in late 2022 after learning Q4 vehicle sales would not deliver the 'epic end of year' he promised investors.
cross-posted from: https://programming.dev/post/15086231
- Elon Musk accused of illegally selling $7.5 billion in Tesla stock in Q4 2022.
- Lawsuit alleges Musk and board violated fiduciary duties by selling shares ahead of disappointing vehicle sales data.
- Shareholder seeks disgorgement of $3 billion in illegal gains and damages from directors for reckless behavior.
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I don't understand why people who have insider knowledge are ever allowed to sell or buy that stock. Seems made for corruption.
38 0 ReplyNormally they will hand off all the stock trading to a third party so there is no conflict.
10 0 ReplyYou can't stop promoters from trading their own stock but there are strict rules for them.
They cannot make a trade based on insider information before it's Public.
7 1 ReplyWell clearly they can. They'll always know things before they happen that will affect the stock price.
3 1 ReplyThey have to eventually make that information public and SEC will track the large buy/sell order taken place before the information is public.
So it's pretty quick and easy to catch them if someone wants to.
1 0 Reply