this post was submitted on 05 Jun 2024
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Musk accused of selling $7.5 billion of Tesla stock before releasing disappointing sales data that plunged the share price to two-year low (fortune.com)
submitted 6 months ago by [email protected] to c/[email protected]
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cross-posted from: https://programming.dev/post/15086231

  • Elon Musk accused of illegally selling $7.5 billion in Tesla stock in Q4 2022.
  • Lawsuit alleges Musk and board violated fiduciary duties by selling shares ahead of disappointing vehicle sales data.
  • Shareholder seeks disgorgement of $3 billion in illegal gains and damages from directors for reckless behavior.
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[–] [email protected] 37 points 6 months ago (2 children)

I don't understand why people who have insider knowledge are ever allowed to sell or buy that stock. Seems made for corruption.

[–] [email protected] 10 points 6 months ago

Normally they will hand off all the stock trading to a third party so there is no conflict.

[–] [email protected] 5 points 6 months ago (1 children)

You can't stop promoters from trading their own stock but there are strict rules for them.

They cannot make a trade based on insider information before it's Public.

[–] [email protected] 2 points 6 months ago (1 children)

Well clearly they can. They'll always know things before they happen that will affect the stock price.

[–] [email protected] 1 points 6 months ago

They have to eventually make that information public and SEC will track the large buy/sell order taken place before the information is public.

So it's pretty quick and easy to catch them if someone wants to.

[–] [email protected] 19 points 6 months ago (2 children)

So prison right? Like for everyone else when they do illegal stuff

[–] [email protected] 15 points 6 months ago (1 children)

The SEC will give him a stern finger wagging

[–] [email protected] 5 points 6 months ago (1 children)

Finally someone is gonna finger that asshole

[–] [email protected] 1 points 6 months ago

🥺👉👈

[–] [email protected] 8 points 6 months ago

Best I can do is $100k fine.

[–] [email protected] 2 points 6 months ago

http://archive.today/gVXdT