Tesla’s board members are criticized for not implementing controls and reporting measures to ensure Musk’s compliance. The suit argues Musk’s influence over the board is excessive and that it lacks independence from him.
Tesla $16B Stock Sale lawsuit : Lawsuit’s Demands and Ongoing Legal Battles
The Rhode Island retirement system asks the Chancery Court to declare Elon and Kimbal Musk in breach of their fiduciary duties and to order them to disgorge proceeds obtained through disloyal sales of Tesla stock.
Elon Musk faces another lawsuit in the Chancery Court, filed by a different Tesla investor in May, over his sale of about $7.5 million in shares in late 2022. This investor also claims Musk used insider information and violated the SEC consent decree.
Tesla $16B Stock Sale lawsuit :Legal Representation and Responses
The Employees’ Retirement System of Rhode Island is represented by attorneys from Prickett Jones & Elliott PA and Lieff Cabraser Heimann & Bernstein LLP. Counsel for Musk and Tesla has not yet responded to requests for comment, nor has a representative for Tesla.
