June 2, 2024 Tesla shareholder Michael Perry on Thursday filed a lawsuit against Elon Musk
Tesla shareholder Michael Perry on Thursday filed a lawsuit against Elon Musk alleging insider trading when the CEO sold shares worth over $7.5 billion in the last two months of 2022.
The lawsuit, filed by Perry in the Delaware Chancery Court, claims that Musk sold a total of over $7.5 billion worth of Tesla shares in late 2022 before the disclosure of disappointing fourth-quarter production and delivery numbers. Perry alleges that Musk, using his access to real-time data, was aware of the lower-than-expected numbers when he sold shares worth $3.95 billion in November 2022 and shares worth $3.58 billion in December 2022.
Tesla publicly unveiled delivery numbers on Jan. 2, 2023, and Tesla’s stock fell to $108.10 on Jan. 3, down from the $123.18 it closed at on Dec. 30, the lawsuit noted, pegging Musk’s “insider profits” for the aforementioned share sales at about $3 billion.
“Musk profited from his misconduct and his exploitation of material and adverse inside information,” the lawsuit said.
Tesla did not immediately respond to Benzinga‘s request for comment on the new lawsuit against its CEO.