Musk has only been the largest shareholder for a few weeks, but he is already facing a class action lawsuit over his handling of the investment. A class action lawsuit has been filed against Musk over his 11 day delay in revealing his investment in the company to the SEC.
Musk was required to file paperwork with the SEC by March 24th, but he didn't do so until April 4th. He may have netted as much as $150 million from that delay. The gains came at the expense of other shareholders, according to the lawsuit.
The market reacted negatively to Musk's purchases and the investors who sold their shares before the disclosure missed the share price increase.
According to the shareholder who brought the suit, he and other investors sold shares at artificially deflated prices because of Musk's actions. The suit alleges that Musk made false and misleading statements to investors about his ownership stake in the company.
The lawsuit was filed after a chaotic few days. TheTesla CEO and noted troll had initially agreed to join the board of directors, much to the displeasure of some employees. The decision was reversed after several days of Musk's characteristically bizarre musings on whether the company should change its name or not.
As a board member, Musk would have been able to act in the best interest of the company and its shareholders, according to an email from the CEO to employees.
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