Filed by the Securities and Exchange Commission in a federal district court in New York, the lawsuit aims to bar Musk from his role as CEO, as well as forcing him to repay investors for any loses.
"less confirmed, key deal terms, including price, with any potential funding source. In truth and in fact, Musk had not even discussed, much less confirmed, key deal terms, including price, with any potential funding source." - lawsuit
Musk has since responded to the claim.
“This unjustified action by the SEC leaves me deeply saddened and disappointed. I have always taken action in the best interests of truth, transparency and investors. Integrity is the most important value in my life and the facts will show I never compromised this in any way.”
The focus of this claim is that Musk making the funding Tweet was manipulative to the publicly traded company's stocks. This all happened amidst talk about privatizing the company with a Saudi Arabian firm.
This goes to show, when you run one of the biggest companies of the year, you shouldn't talk about potential plans for it on Twitter before anything happens.
