Regulators pounced after Musk tweeted in August 2018 that he had “funding secured” to take Tesla private at $420 a share. That sent the company’s shares up more than 13%. As part of the SEC accord, Musk agreed to have his tweets approved by the company’s lawyers.
The fund wants Delaware Chancery Judge Joseph Slights III –- who is handling the other investor case over the Tesla board’s pay as well as a legal challenge to the company’s buyout of solar-panel maker Solar city -– to find the board’s compensation awards were excessive and to make the directors pay back the company.
The case is the Police and Fire Retirement System of Detroit v. Musk, 2020-0477, Delaware Chancery Court (Wilmington).
This article was provided by Bloomberg News.