A Tesla shareholder has sued CEO Elon Musk for alleged insider trading by selling his shares just ahead of disappointing sales figures for the electric cars in the last quarter of FY 2022-23.
Filed in Delaware Chancery court, shareholder Michael Perry alleges Musk sold $7.5 billion of shares in late 2022, allegedly earning 55 per cent more, or $3 billion, from the sales than he would have got had he waited for the fourth quarter numbers, reported Reuters.
"Musk exploited his position at Tesla, and he breached his fiduciary duties to Tesla," the lawsuit said, the agency reported, asking the court to direct Musk to return the profits made from the trades.
The lawsuit said Musk sold the shares on various dates in November 2022 and December 2022.
It has also accused Tesla's directors of breaching their fiduciary duty by allowing Musk to sell the shares.
Perry has alleged that Musk sold his shares when in the public domain Tesla's position was "excellent" and dumped his lot just before the "lower-than-expected" figures came out.
"Had (Musk) waited to make these sales until after the release of material adverse news,... his sales would have netted him less than 55% of the amounts realized from his November and December 2022 sales," the shareholder alleged.
The latest lawsuit is just one of the many in courts against the maverick billionaire.
Musk has been under heat for seeking a $56 billion pay package, a payout opposed by a section of shareholders which is set to vote on the proposal on June 13.
He is also under an investigation for allegedly breaking securities law when he bought shares in social media firm Twitter, which he later renamed X.
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