TWEET HEADACHE: Grant & Eisenhofer Files Lawsuit Against Elon Musk and Tesla Board
Posted on 03/14/2019
In March 2019, law firm Grant & Eisenhofer P.A. filed a lawsuit in the Delaware Court of Chancery representing institutional investors against Tesla CEO Elon Musk and the board of directors of Tesla Inc. The lawsuit alleges Musk’s ongoing unchecked misstatements on social media tool Twitter have continued to harm the company and its shareholders. The lawsuit seeks a declaratory judgment and a permanent injunction against Musk over his unchecked use of Twitter to make inaccurate statements about the company.
Laborers’ District Council and Contractors’ Pension Fund of Ohio is a shareholder of Tesla stock and Grant & Eisenhofer is representing them.
In February 2019, Elon Musk tweeted that Tesla would make around 500,000 cars in 2019. The 500,000 cars tweet, part of a series of tweets, prompted the SEC to come down on Elon Musk for violating the terms of his agreement with the regulatory body.
The full case caption is Laborers’ District Council and Contractors’ Pension Fund of Ohio, Gloria Lupkin, and Jeffrey H. Kripitz c/f Sasha I Kripitz UTMA, Derivatively on Behalf of Tesla Inc. v. Elon Musk, Brad W. Buss, Robyn M. Denholm, Ira Ehrenpreis, Larry Ellison, Antonio J. Gracias, Steve Jurvetson, Kimbal Musk, James Murdoch, Linda Johnson Rice, and Kathleen Wilson-Thompson, and Tesla Inc., as Nominal Defendant 2.